This podcast features Ken Kencel, CEO of Churchill Asset Management, in conversation with Julie Segal of Institutional Investor. The discussion centers on what differentiates private credit managers as the industry matures beyond its initial growth phase.
Private credit is no longer the new story. As the industry matures, the more interesting question is what actually differentiates a manager – and in the core middle market, the answer often comes down to relationships.
Key takeaways:
- Why the core middle market rewards partnership over price, as private equity firms prioritize working with solution providers to build portfolio company value
- How our time-tested relationships – combined with our role as an LP in 350+ private equity funds – positions Churchill as a sponsor’s first call
- Why patient, long-term institutional capital matters more than ever in today’s private credit market
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Private credit investments are illiquid. Investors should expect limited or no ability to access capital during the investment period, which may span multiple years. These investments carry credit risk, default risk, and the potential for loss of principal. They are not appropriate for investors who may require near-term liquidity. Private credit investments are suitable only for investors with long investment horizons, high risk tolerance, and the financial capacity to bear illiquidity and potential loss of principal. Advisors should evaluate suitability on an individual client basis. The illiquidity of private credit investments is a defining and non-negotiable characteristic of the asset class. Lock-up periods, limited redemption windows, and the absence of a secondary market for most private credit instruments mean that investors may have no ability to access capital for the duration of the investment period. Advisors should ensure clients fully understand these terms before any allocation is made. Private credit investments are not appropriate for investors who may require near-term liquidity. Past performance of private credit strategies is not indicative of future results. The risks associated with private credit include, but are not limited to, credit risk, default risk, concentration risk, interest rate risk, geopolitical risk, sector-specific disruption risk (including technology and AI-driven disruption), and the risk of loss of principal. Experienced managers actively manage these risks, but management experience does not eliminate the possibility of investment loss.