Capital Allocators – Inside the Institutional Investment Industry David Lyon – Hybrid Capital Solutions for Private Assets (EP.471)
18 snips
Nov 17, 2025 
David Lyon, Managing Director at Neuberger Berman, shares his extensive journey through finance, from being an arbitrage analyst to leading hybrid capital solutions. He emphasizes the rising need for flexible financing in private equity, detailing his insights on liquidity challenges and competitive dynamics. Lyon explores the evolution of private credit, the importance of relationship-building in sourcing deals, and his philosophy on managing risks. His candid views on investor expectations, growth versus cost-cutting appetites, and the significance of team dynamics offer a refreshing perspective on the industry.
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From Lucky Entry To Boardroom Lessons
- David Lyon landed an analyst role via family connections and taught himself finance as a liberal arts student.
- Early exposure to live M&A deals gave him boardroom experience that shaped his career.
Leverage-Driven PE Was A Short-Cut
- Early private equity used leverage to generate returns with limited industry insight required.
- That model broke down as competition rose and detailed operational theses became necessary.
Quantify Real Downside, Not Conservatism
- Calculate accurate downside exposure rather than conservative guesses when underwriting risk.
- Use realistic probabilities to decide whether to take and price those risks mathematically.