Churchill Asset Management's Alona Gornick - the evolution of private credit, the power of permanent capital, and the importance of the product specialist
Alt Goes Mainstream: The Latest on Alternative Investments, WealthTech, & Private Markets
The Crucial Role of Size and Scale in Private Credit
This chapter explores the advantages of scale in the private credit sector, illustrating how larger platforms can dominate deal-making through their capacity to issue substantial loans. Personal anecdotes demonstrate how larger check sizes enhance negotiating leverage and facilitate critical early discussions in credit agreements.
Welcome back to the Alt Goes Mainstream podcast.
Today’s episode is with someone who has experienced the growth and evolution of the credit space from different vantage points.
We welcome Alona Gornick, a Managing Director, Senior Investment Strategist, and Co-Head of the Chicago Office for Churchill Asset Management, a firm with $50B committed capital that is a provider of financing solutions to middle market private equity firms and their portfolio companies. Churchill is an investment-specialist affiliate of Nuveen, the asset manager of TIAA.
Alona provides investment insights across the private capital spectrum to the investment community – and has a particular focus on working with the Private Wealth and Retail channels. She works closely with Nuveen’s global distribution team to deepen relationships with and educate Churchill’s investors and partners.
Alona leverages her experience in capital markets, investor relations, and credit investing from working at the likes of Nuveen, Golden Gate Capital, and Oaktree Capital Management.
Alona and I had a fascinating conversation. We discussed:
- The evolution of credit investing.
- The opportunities and risks in private credit.
- Are we in a private credit bubble?
- Why the product specialist role is critical for working with the wealth channel.
- The power of scale, particularly in private credit, and how it helps alternative asset managers win deals and invest.
- The strategic benefit of platforms and permanent capital.
Thanks Alona for coming on the show to share your views and wisdom on private markets. We hope you enjoy.
A word from AGM podcast sponsor, Ultimus Fund Solutions
This episode of Alt Goes Mainstream is brought to you by Ultimus Fund Solutions, a leading full-service fund administrator for asset managers in private and public markets. As private markets continue to move into the mainstream, the industry requires infrastructure solutions that help funds and investors keep pace. In an increasingly sophisticated financial marketplace, investment managers must navigate a growing array of challenges: elaborate fund structures, specialized strategies, evolving compliance requirements, a growing need for sophisticated reporting, and intensifying demands for transparency.
To assist with these challenging opportunities, more and more fund sponsors and asset managers are turning to Ultimus, a leading service provider that blends high tech and high touch in unique and customized fund administration and middle office solutions for a diverse and growing universe of over 450 clients and 1,800 funds, representing $500 billion assets under administration, all handled by a team of over 1,000 professionals. Ultimus offers a wide range of capabilities across registered funds, private funds and public plans, as well as outsourced middle office services. Delivering operational excellence, Ultimus helps firms manage the ever-changing regulatory environment while meeting the needs of their institutional and retail investors. Ultimus provides comprehensive operational support and fund governance services to help managers successfully launch retail alternative products.
Visit www.ultimusfundsolutions.com to learn more about Ultimus’ technology enhanced services and solutions or contact Ultimus Executive Vice President of Business Development Gary Harris on email at gharris@ultimusfundsolutions.com.
We thank Ultimus for their support of alts going mainstream.
Show Notes
00:00 Introduction to Ultimus Fund Solutions
01:18 Welcome to the Podcast
02:00 Guest Introduction: Alona Gornick
03:45 Alona's Career Path and Experience
06:59 Growth of Middle Market Direct Lending
07:41 Changes in the Credit Landscape
10:21 The Importance of Size and Scale in Private Credit
13:27 Deal Structuring and Market Evolution
14:46 Impact of High Rate Environment
16:06 Private Credit Returns and Underwriting
20:53 Investor Questions and Market Insights
21:24 Educating Investors on Private Credit
23:43 Private Credit in Wealth Portfolios
24:09 Diversification Benefits of Private Credit
24:24 Yield Premium in Private Credit
26:40 Private Credit vs. Private Equity
27:06 Exploring Private Equity and Private Debt
27:24 Transitioning from Public to Private Credit
27:49 The Role of a Product Specialist
28:09 Balancing Risks and Benefits
28:49 Relating to Advisors with Real Examples
29:40 The Importance of Education in Allocation
30:25 Diverse Viewpoints on Alternative Asset Managers
31:48 Challenges in Access to Capital
33:26 The Significance of Hiring Quality People
34:12 Non-Traditional Backgrounds in Specialist Roles
36:29 Patience and Commitment in Educating Investors
39:13 The Hardest Part of Educating the Wealth Channel
40:47 The Role of Structure in Education
44:21 Concerns About the Future of Private Credit
47:00 The Growth Potential of Private Credit
49:38 The Most Interesting Alternative Investment
50:15 The Opportunity in Private Equity Secondaries
52:47 Private Credit Secondaries: A Nascent Space
54:17 Primary and Secondary Considerations in Credit
54:34 Conclusion and Final Thoughts
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