Principal® Direct Lending Business Launches Private Credit Fund
June 04 2024 - 2:30PM
Business Wire
New offering meets the growing demand of
investors seeking direct lending options
Principal Asset ManagementSM today launched the Principal
Private Credit Fund I, offering exposure to lower and core middle
market loans, with immediate access to these direct lending
investments. The fund will target 90% plus exposure to private
credit and offers investors enhanced yield and return potential
through a disciplined credit investment process. This fund is
managed by Principal Alternative Credit, the direct lending
investment team of Principal Asset Management.
Direct lending has become increasingly popular as investors
recognize the value of the asset class. The yield premium and
floating rate structure of direct lending loans have contributed to
the asset class delivering appealing returns through time, and
notably strong performance in a higher interest rate environment.
Investors appreciate many qualities of private middle market loans
such as the senior secured first lien nature of the asset class,
reasonable leverage levels, financial covenants and exposure to
industries benefiting from positive secular trends. These appealing
attributes of direct lending are highlighted in the lower and core
middle market, which are segments of focus for Principal
Alternative Credit direct lending.
"In the current market environment, many investors are attracted
to the opportunity of direct lending as it provides them with
attractive yields and an expectation for resilient performance
through various market conditions. The Principal Private Credit
Fund I is tailored to meet the evolving needs of investors who
prioritize significant income driven investment returns and
diversification compared to other more typical investment options,"
said Tim Warrick, managing director of alternative credit at
Principal Asset Management.
Principal Alternative Credit is a market leader in private
credit with a heritage of serving clients for over 50 years.1 The
team is comprised of more than 30 dedicated and experienced
professionals averaging over 15 years of experience in direct
lending and surpassed $2 billion in total borrower commitments as
of December 31, 2023.
“With this offering, we have taken the proven approach of the
Principal Alternative Credit team and offered it as an Interval
Fund to meet the needs of our clients in the US Wealth Markets,”
said Barbara Wenig, executive managing director, Principal Asset
Management. Wenig chairs the Interval Fund Board and leads efforts
to advance the offering of semi-liquid private assets to retail
markets.
____________________________________ 1 Experience includes
investment management activities of predecessor firms beginning
with the investment department of Principal Life Insurance
Company
About Principal Asset ManagementSM
With public and private market capabilities across all asset
classes, Principal Asset Management and its investment specialists
look at asset management through a different lens, creating
solutions to help deliver client investment objectives. By applying
local insights with global perspectives, Principal Asset Management
identifies distinct and compelling investment opportunities for
more than 1,100 institutional clients in over 80 markets.1
Principal Asset Management is the global investment solutions
business for Principal Financial Group® (Nasdaq: PFG), managing
$545 billion in assets1 and recognized as a “Best Places to Work in
Money Management”2 for 12 consecutive years.
[1] As of March 31, 2024 [2] Pensions & Investments, “The
Best Places to Work in Money Management”, among companies with
1,000 or more employees, December 12 2023.
©2024 Principal Financial Services, Inc., Principal®, Principal
Financial Group®, Principal Asset Management, and Principal and the
logomark design are registered trademarks and service marks of
Principal Financial Services, Inc., a Principal Financial Group
company, in various countries around the world and may be used only
with the permission of Principal Financial Services, Inc. Principal
Asset Management℠ is a trade name of Principal Global Investors,
LLC.
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version on businesswire.com: https://www.businesswire.com/news/home/20240604571041/en/
Media: Erin Parro, parro.erin@principal.com, 515-878-0130
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