Capital Revolution

Is the noise around private credit overblown, or is it a US-specific story? Patrick Schoennagel, Managing Director and Co-Head of Houlihan Lokey’s Capital Solutions Group, sits down with Mike Griffin, Partner at Sixth Street and Co-Head of the firm's global direct lending business, to unpack how European private credit evolved out of post-GFC bank deleveraging into a multi-billion-dollar asset class. Mike shares Sixth Street's philosophy of flexible, integrated capital, why structural differences make Europe fundamentally different from the US market, and how the firm is thinking about software, AI disruption, and the next credit cycle. The conversation also touches on fundraising discipline, sector rotation, and where European private credit is headed over the next decade.

Key Insights:

• Structure, not sentiment, separates Europe from the US. European private credit is largely built on long-dated, committed drawdown capital rather than redeemable retail structures, which means the liquidity mismatches driving US headlines are much less relevant on the continent.
• Flexibility across the capital structure is a competitive advantage. Sixth Street's integrated, non-siloed platform lets the firm move fluidly between senior debt, structured capital, and hybrid solutions, positioning it to write both $50 million and billion-dollar-plus checks depending on what a situation requires.
• Software's stress is a credit story, not just an AI story. High leverage applied against aggressive growth assumptions during 2020–2022 is now being revisited industry-wide, a pattern Sixth Street views as a normal part of the credit cycle rather than something unique to AI disruption.

What does it take to turn a boutique fitness modality into a global platform? Nate Pund, Managing Director in Houlihan Lokey’s Consumer Group, sits down with Jim Heidenreich, CEO of Merrithew®, a leader in mindful movement equipment, education, and content, to discuss the company's three-pillar business model and its recent acquisitions of Align-Pilates and GYROTONIC®. The conversation also touches on global partnerships, culture and hiring, and where the wellness equipment category is headed next.



Key Insights:

• An integrated ecosystem is key. Merrithew® equipment, education, and content segments reinforce one another, as certified instructors become studio owners who buy equipment and subscribe to digital content, creating a recurring loyalty loop.
• Category tailwinds are global and accelerating. Pilates is moving from a boutique niche into mainstream fitness chains, hospitality, corporate wellness, and rehab, with new customer segments and fast-growing geographies including Europe and the Middle East.
• Community and partnerships drive scale. A network of roughly 350 education partners, 80 distributors, and 250 instructor trainers lets Merrithew® reach over 100 countries while adapting to local language, culture, and service needs.

Matt Swain, Managing Director and Global Co-Head of Equity Capital Solutions at Houlihan Lokey, sits down with Adam Spence, Partner and Head of Co-Investments at Partners Capital, to discuss what it takes to build an effective co-investment program. Adam shares how Partners Capital evaluates opportunities, why speed and transparency are critical in the co-investment market, and what sponsors can do to build stronger relationships before a live deal. The conversation also covers fee and carry expectations, governance rights, follow-on capital, and the growing role of co-investments in private equity.

Key Insights:

● Transparency builds trust. Adam emphasizes that sponsors should share the full story

early, including the risks, rather than presenting an overly polished version of a deal.

● Speed can be a major differentiator. Partners Capital is structured to move quickly

while still maintaining a rigorous diligence and approval process.

● Relationships matter before the deal. Sponsors who invest time in building trust

before a live opportunity are better positioned when timelines are tight.

What separates strong private equity firms from great ones? Justin Abelow, Managing Director at Houlihan Lokey, sits down with Eric Bommer, Co-Managing Partner at Sentinel Capital Partners, to discuss the business of better investing. Eric shares Sentinel’s perspective on investment committee discipline, revenue-driven value creation, strategic M&A, and the role that culture plays in building a durable firm. The conversation also touches on leadership, management-team partnerships, and the outlook for middle-market dealmaking.

Key Insights:

● Value creation matters more than financial engineering. In today’s market, returns are driven more by revenue growth and operational improvement than by leverage or expansion.

● Better decisions come from open, collaborative debate. Sentinel’s process shows that stronger investment outcomes often come from cultures where ideas are challenged early and often.

● A differentiated operating model can be a real competitive advantage. A firm’s approach to collaboration, talent development, and management-team support can directly strengthen execution and investment outcomes.

In the world of finance, capital never stands still. It evolves, shifts, and redefines the world around us. 

Welcome to Capital Revolution, a podcast from Houlihan Lokey, where we take you inside the conversations shaping alternative capital. Each episode, you’ll hear from the people driving change: investors, founders, and advisors who are challenging convention and building what’s next.