Evercore: Flow of Funds with Glenn Schorr

08: Software, Soft Where? How Vista Equity Partners Is Evolving In The AI Era

In this packed episode, Glenn Schorr sits down with Vista’s President David Breach for a discussion covering everything from how AI won’t kill software, but in fact make it better, how the power of incumbency is helping software adapt, embrace and be the delivery mechanism for agentic tools, and how the industry is looking to rearchitect pricing strategies as we moved from the software-as-a-service world to one of software-as-a-worker. And of course, covered current trends across software private equity and how Vista is thinking about the upcoming debt maturity wall.   **Episode Timestamped Overview:**   00:00 Introduction and episode setup 02:07 Vista Equity Partners overview and business model 05:15 David Breach’s unique professional background 07:20 Market anxiety, public perception, and the GenAI “elephant in the room” 13:14 Comparing SaaS/cloud shift to today’s AI transformation 16:34 How to regain confidence: KPIs and what Vista looks at 21:16 How Vista underwrites AI risk and opportunity 25:47 The power of incumbency and real-world examples 30:13 Vista’s institutionalized approach to helping portfolio companies adapt to AI 36:27 Evolving monetization: Usage vs. outcome-based models 40:42 Compute costs, hyperscaler relationships, and scale 44:20 Investment opportunities in the current market 49:35 What LPs want to know about GenAI and portfolio resilience 52:24 Exit environment and outlook for software PE 55:08 Key takeaways and closing remarks   *** Applicable current disclosures regarding the companies discussed in this video are available at the offices of Evercore ISI: 55 East 52nd Street, New York, NY 10055, and at the following site: [evercoreisi.mediasterling.com [http://evercoreisi.mediasterling.com/]/disclosure⁠](http://evercoreisi.mediasterling.com/disclosure%E2%81%A0 [http://evercoreisi.mediasterling.com/disclosure%E2%81%A0])

07: CLO’s Explained: How they Work and What Drives Returns with Lauren Basmadjian

Join Glenn Schorr as he sits down with Lauren Basmadjian, Partner and Global Head of Liquid Credit at Carlyle, for a deep dive into the world of CLOs (Collateralized Loan Obligations). This episode of Evercore’s Flow of Funds podcast demystifies the CLO market, covering how CLOs are structured, the mechanics of cash flow, the array of risk/return opportunities, and the evolving investor landscape.Lauren Basmadjian draws on her 25 years in the industry to explain how CLOs act as “mini banks,” why the market is so resilient, and which types of investors are drawn to each tranche.Whether you’re new to structured credit or a market veteran, this episode delivers insights into one of today’s most dynamic asset classes. **Episode Timestamped Overview:** 00:00 Welcome and Introduction 00:16 Lauren Basmadjian Background & Carlyle's Liquid Credit Platform 03:01 CLO Structure Explained 05:18 CLO Tranches: Risk, Return, and Investor Profiles07:50 CLOs vs. Other Securitized Products 09:27 CLO Fees, Resets, and Manager Upside12:13 Scalability and Managing Large CLO Platforms 14:12 Banks’ Role & Loan Sourcing 15:34 Who Buys CLO Tranches? 18:22 Risk Retention & Equity Tranche Limiting Factors 20:35 Managing CLO Credit Risk & Recovering from Defaults 22:59 Performance, Active Management, and Avoiding Defaults 25:06 Structural Protections: OC Test 26:12 What Defines "Good" CLO Performance? 27:30 Biggest Risks for CLO Investors 28:26 Default & Recovery Rates in CLOs 29:15 Liability Management Exercises (LMEs) Explained 30:43 Risks to Managers—Fees and OC Breaches 32:24 Reinvestment Risk & Market Conditions 34:03 Major Manager Mistakes and Importance of Position Sizing 34:52 Pricing, Returns, and Volatility's Silver Lining 37:29 Measuring CLO Manager Performance 38:26 Market Growth, Resets, and Industry Dynamics 40:01 Direct Lending, Tailwinds, and Supply/Demand Trends 42:16 Credit Cycles and Current Portfolio Data 44:18 Default Rates: Now and Ahead 45:51 Where the Losses Typically Land in CLOs 47:32 What Differentiates Top CLO Managers 49:13 Carlyle’s Loan Sourcing & Bank Relationships 51:23 Marketing Performance and Opportunities for Growth52:33 Looking Forward: Trends and Fee-Paying Opportunities53:55 Speed Bumps & The State of the Software Sector 57:40 AI at Carlyle: Real World Applications 59:21 What Could Really Change the CLO Market 60:35 European Capital Rules & Insurance Investors 60:45 One Big Misunderstanding: CDOs vs. CLOs 61:02 Wrap Up and Closing Remarks Applicable current disclosures regarding the companies discussed in this video are available at the offices of Evercore ISI: 55 East 52nd Street, New York, NY 10055, and at the following site: [evercoreisi.mediasterling.com [http://evercoreisi.mediasterling.com/]/disclosure⁠](http://evercoreisi.mediasterling.com/disclosure%E2%81%A0 [http://evercoreisi.mediasterling.com/disclosure%E2%81%A0])

06: Steve Eisman's Perspectives on Private Credit & Why It's Probably Not 2008

Glenn Schorr welcomes legendary investor Steve Eisman, renowned for his market-shaking calls before the global financial crisis, to uncover what could be brewing beneath the so-far “safe” surface of private credit and direct lending. Journey through key moments where Steve Eisman was years ahead of consensus on everything from the dismantling of Glass-Steagall to the demise of subprime lending, to the heart of 2008 itself. Together, they break down why today's market "is not a leverage story," how unprecedented exposure in private credit may drive a rolling cycle of restructurings, and whether the industry’s golden age of growth has been a genius move—or just a mirage in the absence of a credit cycle. Gain insight into why strong banks may avert systemic disaster, why private equity’s “lack of volatility” is an illusion, and how AI, receding software multiples, and refinancing walls could force the next big reckoning—not just bad vintages. Full of candid stories, historical lessons, and unfiltered opinions, this episode gives you a rare view into both the vigilance and optimism needed for today’s markets. Episode Timestamped Overview: 00:00 Introduction: Who is Steve Eisman and why his calls matter01:32 Glass-Steagall, broker M&A, and early career inspiration06:01 The fall of consumer finance companies and the power of granular data12:06 The Great Financial Crisis: inside stories and data vs. narrative18:05 Today’s private credit: what’s different, what’s at risk21:17 Hidden leverage and stress points: software, refinancing, and AI28:35 Resilience in the US economy and historic loss rates31:08 Why this isn’t a leverage crisis—mistaking no credit cycle for genius33:45 Volatility washing in private equity and the illusion of low risk39:30 Will bad vintages become great opportunities? Institutional and retail impact40:11 Closing reflections: Is there a forest through the trees today—or just a period of market adjustment? Applicable current disclosures regarding the companies discussed in this video are available at the offices of Evercore ISI: 55 East 52nd Street, New York, NY 10055, and at the following site: evercoreisi.mediasterling.com/disclosure⁠ [http://evercoreisi.mediasterling.com/disclosure%E2%81%A0]

05: Unlocking Alpha in Cash: MaxMyInterest Founder Gary Zimmerman

What if you could eliminate the anxiety of chasing the highest yield on your cash—and earn thousands in extra income without ever switching banks? In this episode of Evercore's Flow of Funds, host Glenn Schorr sits down with Gary Zimmerman, founder and CEO of MaxMyInterest, who reveals the secret to turning cash—a supposedly “boring” asset—into a source of meaningful alpha. You’ll hear how a former investment banker’s frustration during the 2008 financial crisis sparked a fintech platform now managing cash for clients from the “bottom 98% of the top 1%” to ultra-high-net-worth households. Gary Zimmerman shares why most advisors vastly underestimate how much cash their clients really hold, and how Max has solved the friction that keeps investors from maximizing yield and safety. He also provides eye-opening insights into the evolving world of AI in banking, the misperception of “too big to fail” banks, and the real reason why banks and RIAs alike are embracing Max as a friend—not a foe. Key highlights: * The origin story: how a near-bank-failure sparked a $40k alpha opportunity (Gary Zimmerman) * Why cash “alpha” is a real—and neglected—source of returns * How Max helps clients, advisors, and banks win at the same time, without disrupting existing relationships * The behavioral blind spots around cash—exposed with hard numbers * Real talk on AI, cybersecurity, tokenization, and the future of digital banking Episode Overview 00:00 – Introduction to Evercore’s Private Markets and Wealth Forum 00:16 – Glenn Schorr introduces Gary Zimmerman and tees up the cash alpha topic 02:03 – What is Max? The purpose, origin, and how it works 06:38 – Growth journey, friction points, and how Max found its market 12:17 – Value for clients, advisors, and banks—and why Max is friend, not foe 19:49 – Rates, performance, and concrete value for end clients 21:25 – Max Private: New offering for RIAs and UHNW clients 26:35 – Real-time settlement, behavioral economics, and cash management 29:13 – The role (and limits) of AI in banking, and cybersecurity issues 33:19 – Tokenization, stablecoins, and the risks of new digital products 38:48 – Max vs. brokered sweep solutions—lower risk, more control 40:11 – Industry rate cycles, customer apathy, and Max’s steady value 42:16 – Too big to fail, due diligence, and how Max protects clients 48:39 – Pricing, how Max makes money, and no conflicts of interest 50:56 – Global possibilities vs. massive US opportunity 53:23 – One-click consolidated tax reporting and ease of use 54:05 – Closing thoughts and summary Applicable current disclosures regarding the companies discussed in this video are available at the offices of Evercore ISI: 55 East 52nd Street, New York, NY 10055, and at the following site: evercoreisi.mediasterling.com/disclosure⁠ [http://evercoreisi.mediasterling.com/disclosure%E2%81%A0]

04: An Inside Look Into The World of Systematic Credit with Acadian Asset Management

What if we told you that only around 1% of the massive $17 trillion corporate credit market is managed systematically—leaving a huge opportunity for those who dare to innovate? In this episode of Evercore's Flow of Funds, host Glenn Schorr sits down with Kelly Young, CEO of Acadian Asset Management, and Scott Richardson, Head of Systematic Credit, for an eye-opening look into the world of systematic credit investing. You'll get a behind-the-scenes view of how Acadian leverages advanced data science, machine learning, and transparency to bring rigor and discipline to credit markets. The guests break down what sets their approach apart from traditional managers, discuss the explosive growth and future potential of systematic credit, and address common misconceptions about AI and “black box” investing. Plus, you'll hear candid insights on the rise of private credit and what environments foster alpha in systematic strategies. Key highlights: * Why systematic investing is poised for major growth in credit markets * What “black box” really means—and why Acadian opens the lid * How AI and machine learning enhance but don’t replace human insight * The advantages of being a liquidity provider in fixed income markets * Where institutional investor demand stands today, and the road ahead Timestamped Overview: 00:00 - Introduction and episode goals 01:17 - Acadian Asset Management overview & systematic investing defined 02:54 - Key differentiators and transparency vs. black box 04:01 - Scott Richardson’s background and systematic credit introduction 05:19 - What is systematic credit and why does it matter now 07:08 - Market size, active vs. passive, and potential opportunity 09:25 - Factors and security selection—building uncorrelated portfolios 11:02 - Private credit trends and the effect on public markets 14:38 - Market conditions: alpha vs. beta, environments for success 16:48 - Capacity constraints and liquidity 18:08 - AI, machine learning, GenAI—how tech fits into investing 20:11 - Leveraging Acadian’s data and technology platforms 22:14 - Analyst roles and process transparency 24:17 - Institutional investor perspective and education 26:16 - Systematic vs. passive: alpha and market positioning 27:11 - The future of systematic credit and Acadian’s vision 28:44 - Liquidity, scale, and closing thoughts 29:03 - Outro and disclaimers ** Applicable current disclosures regarding the companies discussed in this video are available at the offices of Evercore ISI: 55 East 52nd Street, New York, NY 10055, and at the following site: https://evercoreisi.mediasterling.com/disclosure⁠