Capital Allocators – Inside the Institutional Investment Industry Ron Kantowitz – Direct Lending’s Evolution and Invesco’s Edge (EP.457)
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Jul 17, 2025 
Ron Kantowitz, Head of Private Debt at Invesco, dives into his 30-year journey in direct lending and the evolution of lending markets. He shares insights on building successful investment strategies in a competitive environment and the importance of solid relationships and due diligence. Kantowitz also discusses the risks in direct lending, including rising leverage levels and how to differentiate quality earnings. With a focus on the shifting dynamics of private equity and credit markets, he highlights the growing role of banks and emerging opportunities for investors.
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From Engineer to Finance Leader
- Ron Kantowitz started as a systems engineer at Electronic Data Systems, working onsite at a bank.
- He realized his interest in finance and transitioned to leveraged finance after earning an MBA from University of Chicago.
Evolution of Direct Lending
- Direct lending isn't a new asset class but a shift from banks to private capital post-GFC due to regulations.
- It offers stability, consistency, and low defaults, making it a key portfolio component today.
Conservative Lending Strategy
- Focus on senior secure, first-lien lending to stable, boring businesses with covenants for capital preservation.
- Partner exclusively with private equity sponsors to mitigate risk and align interests.