Direct lending: Where LPs should be focused

In a recent Q&A interview with Private Debt Investor, Churchill Asset Management’s Randy Schwimmer and Derek Fricke discuss why global trends are less of an issue in the traditional middle market.

Questions asked:

• As interest rate expectations shift and the broadly syndicated loan market has re-opened, how can investors evaluate the private debt opportunity today between the lower, traditional and upper middle market?
• How do deal sourcing strategies differ and, in a more competitive market, which managers are accessing the top deals?
• In light of today’s lower new deal environment, which managers are best positioned to consistently put investor capital to work in attractive opportunities?
• What are some key questions LPs should ask during due diligence when evaluating a manager’s underwriting approach and risk management?
• When looking under the hood of a manager’s track record, which are the key metrics that are really most important?