Lavine argues that rising rates are not automatically negative for private credit. Most private-credit loans use floating rates, increasing lender income, while rate increases associated with economic strength may coincide with fewer defaults.

Private-credit instruments are predominantly floating rate
Interest income rises as benchmark rates rise
The reason rates are rising matters
Economic growth can support borrower performance and reduce defaults

“most of the way we loan in private credit is through floating rate instruments, and therefore, as rates go up UH, the amount of interest…”
Jonathan Lavine · 25:28

“that would suggest that there will be fewer defaults, so it would be a good market to lend private credit.”
Jonathan Lavine · 26:04

#interest rates#private credit#floating rate#defaults

Hot Take· 1

Hot Take52:20

The Holocaust Also Teaches What Bystanders Failed to Do

Lavine argues that Holocaust education is not only about historical antisemitism but about the recurring danger created when societies look away. He highlights America's inaction, modern extremist symbolism, and the museum's broader educational work on genocide.

Atrocities can recur when historical lessons are forgotten
Inaction and distance can become excuses for bystanders
Nazi symbols and rhetoric remain relevant to modern extremism
Holocaust education also informs prevention of genocide more broadly

“The Holocaust is not just a moment in history.”
Jonathan Lavine · 52:31

“there are a lot of lessons to be learned to see what happens when people, UM are bystanders and I think it's not their problem.”
Jonathan Lavine · 53:17

#holocaust#history#bystanders#genocide

Explainer· 2

Explainer13:46

Why Bain Capital Uses Managing Partners Instead of a CEO

Lavine describes Bain as an old-fashioned partnership rather than a top-down corporation. Its co-managing partners perform co-CEO functions but organize partners, guide strategy, maintain standards, and coordinate expansion without diminishing every partner's leadership responsibility.

The co-managing partners are functionally co-CEOs
Bain deliberately avoids the CEO title
All partner voices are expected to matter
Central leaders coordinate strategy, standards, and expansion

“We do not run the firm top down. We are an old fashioned partnership where the voices of all the partners matter.”
Jonathan Lavine · 14:07

“Everybody is a leader and everybody needs to contribute.”
Jonathan Lavine · 14:15

#leadership#partnership#culture#governance

Explainer17:19

How Local Presence Revealed Pandemic Credit Opportunities

The pandemic recovery differed sharply by industry and geography, leaving opportunities in airlines, restaurants, European bank assets, and bespoke rescue capital. Bain's offices in multiple countries enabled local diligence when travel restrictions prevented outside investors from reaching assets and management teams.

Industry averages concealed uneven recovery paths
European banks still needed to shed troubled assets
Some companies sought stronger capital structures after surviving the first shock
Australian offices enabled local analysis of Virgin Australia
Geographic proximity became an information advantage

“Because the recovery was industry specific, so not everything came back at the same time.”
Jonathan Lavine · 18:00

“we were able to UM do analysis US and have a view that others weren't able to have because you couldn't get to Australia.”
Jonathan Lavine · 21:54

#pandemic#distressed debt#geography#private equity

Story· 4

Story02:18

How Free Food Led Jonathan Lavine from Law School to Wall Street

Lavine planned to attend Columbia Law School until a friend encouraged him to interview for new investment-bank analyst programs. A joking promise of free food led him to Drexel Burnham, followed by Harvard Business School, McKinsey, and eventually Bain Capital.

Lavine studied political science and English literature rather than economics
He joined Drexel Burnham before business school
McKinsey added strategic business experience to his finance background
Bain sought someone combining consulting and banking experience

“well, there's free food, and I said, well, free food, I'll definitely show up.”
Jonathan Lavine · 03:00

“I tell people I accepted it because it felt right.”
Jonathan Lavine · 06:12

#career#wall street#bain capital#consulting

Story08:05

Why Bain Built a Credit Business During a Hot Equity Market

Bain believed its leveraged-company investment expertise could transfer from equity to debt and made a long-term move across asset classes. Lavine's Drexel and financing experience made him the logical founder of the credit operation, initially branded separately because debt affiliates of private-equity firms were unusual.

Bain expanded across asset classes and geographies in the mid-1990s
The firm expected leveraged-equity skills to transfer to leveraged debt
The strategy targeted a sustainable advantage rather than a short market window
The credit affiliate initially used a separate name to avoid sponsor conflicts being misread

“we invest for very long periods of time and therefore it wasn't like we saw a two year window or at any time one asset…”
Jonathan Lavine · 09:27

“We thought that we had a sustainable advantage in this space.”
Jonathan Lavine · 09:40

#private credit#bain capital#asset management#entrepreneurship

Story26:34

The Pickup Trucks That Moved Bain's Trading Floor Home

Bain moved quickly to equip every employee for remote work, supplying routers, faster internet, laptops, and screens rather than spending weeks debating policy. In Boston, pickup trucks physically moved trading stations into employees' homes, and the firm continued operating without missing an hour.

Technology infrastructure was already available
Equipment support covered junior and senior employees alike
Trading stations were rebuilt in homes during the first week
Remote work increased comfort collaborating across global offices
The firm continued hiring and investing during the pandemic

“A lot of firms spent a lot of time figuring out what they were going to do, and we made the concerted effort to enable…”
Jonathan Lavine · 27:38

“Within the first week of the pandemic. We never missed in an hour.”
Jonathan Lavine · 27:58

#remote work#pandemic#operations#culture

Story38:22

From an $18 Donation to Three Decades with City Year

Lavine and his wife focus their philanthropy on leveling access to education, financial aid, life skills, and justice. He traces their involvement with City Year from an early symbolic $18 donation to decades of board service, alongside support for uAspire, LIFT, and the Equal Justice Initiative.

Personal educational opportunity shaped the family's philanthropic focus
City Year uses near-peer mentors to support public-school students
uAspire helps students navigate confusing financial-aid offers
LIFT provides practical coaching rather than only financial assistance
Reading Just Mercy prompted substantial support for the Equal Justice Initiative

“we focus a lot of our philanthropy on what we call leveling the playing field.”
Jonathan Lavine · 39:08

“the problems we have of opportunity aren't intractable”
Jonathan Lavine · 40:38

#philanthropy#education#economic mobility#justice

Tool· 1

Tool47:40

Why Emerging Filmmakers Need Completion Grants, Not Just Ideas

Ken Burns told Lavine that early filmmakers can often capture raw footage but struggle to finance the final production work. Lavine, his wife, and Burns consequently funded a Library of Congress prize that supplies completion grants, later adding mentorship for filmmakers from underrepresented groups.

Post-production can be the decisive funding gap
The prize supports a winner and several runners-up
Completion funding converts raw material into production-worthy films
Mentorship and fellowships address representation as well as funding
Trusted historical storytelling can strengthen social understanding

“The toughest thing he had was getting what's called the completion grant.”
Jonathan Lavine · 49:43

“really pulling it together in something that was production worthy.”
Jonathan Lavine · 49:51

#documentary#filmmaking#grants#mentorship

Takeaway· 5

Takeaway32:14

Stop Recruiting Finance Talent from the Same Schools

Bain recognized that small annual hiring classes made it easy to return repeatedly to the same institutions and reproduce the same demographics. The firm partnered with specialist organizations and used large Zoom sessions to explain investing, teach interview skills, and reach students across the country.

Diversity includes thought, geography, and socioeconomic background
External organizations can contribute expertise a firm lacks
Small hiring volumes can reinforce narrow recruiting habits
Virtual information sessions broaden access before applications
Industry accessibility matters beyond filling one firm's vacancies

“it was really easy to just lapse into keep going to the same schools you're going to, and we recognize that that wasn't going to…”
Jonathan Lavine · 33:49

“you just have to keep experimenting, leaning in, and you know, be willing to take some risk”
Jonathan Lavine · 34:48

#diversity#recruiting#finance careers#access

Takeaway45:28

You Cannot Fix Inequality Until You Name and Own It

Lavine places strong public education at the foundation of economic mobility but argues that awareness must extend beyond schools. Unequal access to business formation, capital, networks, and other resources must be named before institutions can address it.

Public schools should be great rather than merely adequate
Different lived experiences produce unequal access to opportunity
Capital and entrepreneurial networks are unevenly distributed
Institutions must acknowledge disparities before designing remedies

“the first thing is we've got to be aware of the disparity. You can't fix it until you name it and you own it”
Jonathan Lavine · 47:01

“people with different lived experiences do not have the same access to starting businesses, the same access to UM capital”
Jonathan Lavine · 46:19

#economic mobility#education#inequality#access

Takeaway1:03:14

Sponsorship Means Taking Responsibility for Others' Success

Lavine distinguishes sponsorship from ordinary mentoring: colleagues share responsibility for one another's advancement. Working with two partners who had contrasting investment styles also taught him that people and values matter and that excellent investing has more than one valid method.

Sponsorship requires active responsibility for another person's success
Contrasting mentors expose people to multiple valid approaches
Treatment of teams and portfolio-company employees affects business relationships
Values are expressed through everyday conduct
A career is measured partly by opportunities deliberately declined

“It's more than just mentoring. It's it's we're responsible for each other's success.”
Jonathan Lavine · 1:03:26

“you are measured not only by what you do, but what you choose not to do.”
Jonathan Lavine · 1:05:47

#mentorship#sponsorship#career#values

Takeaway1:09:34

Why Money Alone Is a Weak Reason to Enter Finance

Lavine advises graduates to understand why finance genuinely interests them before committing to the career. Money eventually stops motivating, and sustained success is unlikely without curiosity, aptitude, and a clear personal reason for doing the work.

Clarify the motivation behind the career choice
Financial rewards are insufficient for lasting engagement
Interest and aptitude need to coexist
Purpose supports persistence through difficult periods

“If you do it just for the money, at some point that won't be enough.”
Jonathan Lavine · 1:09:47

“You've got to be good at it um and you want to make sure you know why you're doing it.”
Jonathan Lavine · 1:10:05

#career advice#finance#motivation#graduates

Takeaway1:10:24

Markets Are Never as Good—or as Bad—as They Feel

Lavine's cycle-aware maxim warns against becoming euphoric in strong markets or despondent in weak ones. Remembering that markets move in cycles helps investors preserve perspective and look for the other side of extreme conditions.

Strong markets tempt investors into excessive enjoyment and confidence
Weak markets can make temporary conditions feel permanent
Market cycles create another side to both extremes
Emotional calibration supports better long-term judgment

“it's never as good as it looks or as bad as it feels”
Jonathan Lavine · 1:10:27

“when the markets are bad, remember that markets operating cycles and there is another side.”
Jonathan Lavine · 1:10:39

#market cycles#investor psychology#perspective#mindset

Frameworks in this episode

Global Core-and-Local Model

Loss-Adjusted Spread Test

One Size, Federer, and Moon Checklist

OODA Adaptation Loop

Repayment-First Credit Filter

Thoughtful Investing Driving Model

Insights & moments

⚡Myth Buster· 1

Why Rising Rates Can Improve Private-Credit Prospects

◆Hot Take· 1