Armen Panossian: Navigating the 2026-27 Liquidity Gap. How the World’s Leading Distressed Debt Investor is Positioning for Market Shifts

In this episode, Partner and Private Wealth Advisor Ryan Loehr speaks with Armen Panossian, the co-CEO of Oaktree Capital. Oaktree is one of the most renowned investment businesses in the world, most famous for its capability in distressed debt and heavily influenced by Howard Marks who co-founded the business nearly 30 years ago. Beyond distressed debt, Oaktree oversees more than $193B for investors, which include most of the largest US pension funds; many sovereign wealth funds; endowments, large institutions and family offices. The business invests across credit, private equity, real estate and listed equities.

Armen joined the firm in 2007, immediately before it navigated the Global Financial Crisis in 2008 very successfully; and prior to this, worked in distressed debt with Pequot Capital Management, at the time one of the largest hedge funds globally. He holds a B.A. degree in economics with honors and distinction from Stanford University; an M.S. degree in health services research from Stanford Medical School; a J.D. degree from Harvard Law School; and an M.B.A. from Harvard Business School.  Mr. Panossian serves on the Advisory Board of the Stanford Institute for Economic Policy Research.  He is a member of the State Bar of California.

We explore a broad range of topics, including the conditions and settings that can make distressed debt investing attractive; example transactions that it has been successful with; and the timing of Oaktree's $15B+ raise for its largest distressed debt fund. We explore the dramatic shift in monetary policy and credit conditions over recent years and its implications; and observe segments of corporate America that are under increasing pressure, especially small-business. We then turn our conversation to private credit, including increased competition in this segment, key risks, relative appeal vs. other asset classes:  risks and opportunities that eventuate from illiquidity, structuring, speed and scale; and the anticipated 'funding gap' that companies may face over 2026 and 2027. I hope you enjoy this episode.