This episode is sponsored by Rithm Capital

Asset-based finance is rapidly evolving within the world of private credit, offering investors a differentiated source of risk-adjusted returns. With the market valued at over $20 trillion, it underscores the vast scale and growing importance of this segment as investors seek alternative opportunities amid shifting economic conditions.

In this episode, we speak to Michael Nierenberg, CEO of Rithm Capital, to discuss why asset-based finance is becoming more popular with investors. We analyse the opportunities ABF brings, while also exploring how managers are differentiating themselves in a competitive market.

This episode is sponsored by Nuveen

The private debt industry continues to go from strength to strength, with several key segments of the market gaining further traction with institutional investors as they seek out strong returns in an uncertain macroeconomic environment.

Both geography and strategy will be crucial to attract LPs in the coming months and years - Europe and the US each have significant market factors at play that will determine the trajectory and rate of private credit growth across both markets, while the infrastructure-focused investment-grade space is seeing strong dealflow despite volatility.

In this episode, we speak to Randy Schwimmer, vice chairman and chief investment strategist at Churchill Asset Management; Laura Parrott, a senior managing director and head of the private fixed income group at Nuveen; and Michael Massarano, a partner and deputy CIO of Arcmont Asset Management, to find out more about the dynamics driving private debt activity across these three key segments.

This episode is sponsored by Arrow Global

To be a successful player in the distressed lending market, one needs to understand the importance of timing. The current macroeconomic environment offers plenty of opportunities for distressed lenders looking to assist businesses struggling with market dislocation, bank retrenchment and policy uncertainty. However, lenders that look to take a more opportunistic approach to the strategy may not be able to deliver the kinds of returns sought by increasingly sophisticated investors.

In this episode, we speak with Zach Lewy, founder, CEO, and chief investment officer of Arrow Global, to discuss the importance of taking a long-term view on potential targets and the opportunities and risks associated with the strategy.

We also explore why default rates are no longer truly indicative of distress in the market and why lenders who have pan-European footprints are particularly well-placed to benefit from market dislocation.

Philip Sherrill, Blackstone's global head of insurance at the company's credit and insurance unit, joined to talk about why it chooses a "capital-light" approach to insurance investing. In addition, he expands on the growing homogenisation of how insurance investors access private credit, and how the policies they're underwriting influence that – across the globe.

Oaktree Capital Management’s announcement in early February that its Opportunities Fund XII had raised $16 billion – inclusive of co-investments and affiliated investment vehicles – represented the largest fundraise for an opportunistic/distressed debt fund to date.

Brook Hinchman and Jared Parker – both managing directors and co-heads of North America for Oaktree’s Global Opportunities strategy, joined The Private Debt Investor Podcast to discuss the strategy and how a mixture of factors including tariffs, liability management exercises and the path forward for interest rates are influencing decision making as the fund’s investment phase is in full swing.

This episode first appeared on Secondaries Investor's Second Thoughts podcast, which you can subscribe to by clicking here, or searching wherever you listen to podcasts.

Private credit secondaries has the potential to surpass private equity in deal volume over the longer term as more secondaries investors pursue yield and diversification amid market volatility.

Over the past year, several billion-dollar-plus deals have emerged in the credit secondaries space, including Coller Capital's recent acquisition of a $1.6 billion portfolio from American National and TPG Angelo Gordon's $1.5 billion continuation fund. Firms like Coller, Pantheon, Apollo Global Management and Ares Management have also launched dedicated credit secondaries strategies.

In this episode, Michael Schad, head of secondaries at Coller Capital, and Gerald Cooper, global co-head of secondaries advisory at Campbell Lutyens, speak with Secondaries Investor Americas correspondent Hannah Zhang about the evolution of the private credit secondaries market and where the next opportunities may emerge.

"Most of the asset managers are sitting on tens of billions of NAV. So it lends itself to a secondary opportunity that is inevitably going to continue to grow and be of scale," Cooper said in the podcast. "I think as we look five to 10 years down the road, we are hopeful that we are going to see more specialised pockets of capital come into the space."

Over the last few years, talk of private credit’s “golden age” has grown louder, with predictions from various sources that the asset class could eventually grow to around $20-25 trillion in size from its current level of $2-3 trillion. Yet, fundraising has slowed since its peak in 2021. So was all the talk premature?

Jess Larsen, founder and chief executive officer of private credit-focused placement agent Briarcliffe Credit Partners, believes that it was – but he also believes this is the year when a corner will be turned and private credit will start the journey that could see it one day become larger than private equity.

In this episode, Larsen also shares his thoughts on direct lending and predicts that economy of scale will become all the more crucial, and could lead to the emergence of $100 billion evergreen mega-funds.

On today’s hot topic of tariffs, he does not think signs of the investor response will start to emerge for another few months, but with volatility “the order of the day” in his words, he thinks it’s inevitable that LPs will focus on building all-weather portfolios that go well beyond the confines of direct lending.

This episode is sponsored by Rithm Capital

The asset-based finance market is heating up, with a raft of private credit investors increasingly taking note of the strategy – and for good reason. Capable of delivering strong returns even in challenging macroeconomic environments due to its cashflow-oriented nature, ABF represents a rather unique offering for lenders and LPs alike.

But contrary to what many might think, ABF is not a particularly new strategy. Michael Nierenberg is Chairman, Chief Executive Officer and President of Rithm Capital, a global asset manager focused on real estate, credit and financial services which makes direct investments and operates several wholly-owned operating businesses.

In this episode, he explains how the market has evolved over his more than 30 years in the industry. He also discusses which industries are particularly well-positioned to benefit from ABF strategies and why he believes ABF is an area in which investors are underinvested.

Growing scale is one of the big themes in private debt as a small group of mega-sized GPs expand their platforms rapidly – both building on existing strategies like direct lending and colonising new areas such as asset-based lending and specialty finance.

Among the largest of these managers is Goldman Sachs Asset Management, one of the early pioneers of the asset class. In this edition of The Private Debt Investor Podcast, we hear from James Reynolds, global co-head of GSAM’s private credit business, about how the addressable market is growing larger still – with $10 billion club deals now within the view of direct lenders.

Reynolds explains why the firm has launched a climate credit strategy, arguing there is a large supply/demand imbalance in that area. He also discusses the blurring of the public and private markets, how managers are reaching out to large new pools of investor capital, why there is room for optimism around the M&A market, and the importance of focusing on underwriting rather than being distracted by the headlines.

Private debt's rapid growth is continuing to attract attention from junior professionals that are looking to make a career for themselves in this dynamic market. But how can they stand out from the crowd and prove their value in what is an increasingly competitive labour market?

In November, Private Debt Investor unveiled its annual list of Rising Stars of Private Debt, which highlights the young professionals that are blazing a trail in the asset class.

For this episode, we asked three of this year's cohort to reflect on their careers and share how they capitalised on opportunities that came their way over the course of their career, how they identified their areas of interest and what their advice would be for the next generation of private credit professionals.

Listen as Hannah Roberts, special projects editor at PDI, speaks with Adam Baghdadi, a managing director in the lending team at Arrow Global; Priscilla Schnepper, an investment manager in the private credit team at the European Investment Fund; and Catherine Verri, a partner in the investor relations team at Carlyle, to get their top tips on how to succeed in this industry.

See the full list of the Rising Stars of Private Debt here.