As markets continue to shake with daily U-turns on future rate expectations as each FOMC voting member makes a speech, Italy melts, Trump indicates a 2024 bid, etc. – I continue to invest in different parts of the capital structure.
We’re making a new private debt fund investment that checks a lot of the boxes for us. It’s diversified, has a flexible mandate across large cap, middle market, and liquid loans, and has a strong credit sponsor backing it. While the world is awash with private debt vehicles, few traffic in loans with $250m+ in EBITDA, few have a flexible mandate to dial up / down where value is, and few are pushing into larger and larger loans where the air is thin.
I expect this investment to materially bolster investment income and provide a ballast as markets may worsen in the coming months and years.