Principal® Expands Direct Lending Business in 2021 With Eight-Fold Increase in Committed Capital
19 Enero 2022 - 11:05AM
Business Wire
Principal Global Investors®, through its direct lending
business, Principal Alternative Credit, closed out 2021 with a more
than eight-fold increase in committed capital, advancing its plans
to expand its private debt capabilities. Marking the completion of
its first full year in the direct lending market, Principal
Alternative Credit closed on nearly 40 transactions, including five
transactions as the lead agent, representing over $750 million of
committed capital.
Principal Alternative Credit invests in privately negotiated
debt transactions with both sponsor-backed and non-sponsored middle
market companies throughout North America that typically have $5
million or more in EBITDA. The direct lending team targets
transactions of $25 million to $200 million, with a typical hold
size of $10 million to $50 million.
Transactions in 2021 included opportunities across the full
range of products Principal Alternative Credit offers, including
senior, unitranche, mezzanine and holdco PIK debt, along with
equity tag investments backing both sponsor and non-sponsor,
leveraged buy-outs, add-on acquisition financings, debt
refinancings and recapitalizations.
“Our partnerships with an expanding group of private equity
sponsors over the past year and a half demonstrate the array of
solutions we can provide our clients as they grow their
businesses,” said Tim Warrick, managing director, Principal
Alternative Credit. “We look forward to 2022, and the opportunity
to expand on this capability, as we anticipate issuing commitments
of $1.5B, adding strategic hires in both our sponsor and
non-sponsor coverage areas and expanding our fundraising
efforts.”
Principal Global Investors has been expanding its direct lending
relationships and capabilities since July 2020, accelerating asset
deployment. Utilizing the firm’s 50-year heritage of private credit
lending1, Principal Alternative Credit seeks to provide clients
with financing options tailored to their capital needs.
“This past year has been a great example of our team’s ability
to maintain a flexible and nimble approach, balanced by appropriate
credit appetite. We experienced a significant increase in
opportunities in the fourth quarter and were able to win
transactions and solve financing challenges for both new and
existing relationships,” said Matt Darrah, managing director and
head of underwriting, Principal Alternative Credit.
About Principal Global Investors® Principal Global
Investors® leads global asset management at Principal®. As a
multi-investment team firm, we bring a focused perspective and
offer expertise across a host of asset classes.
At our core, we are driven by our purpose to help investors and
businesses achieve their financial goals. Our global investment
professionals deliver investment solutions for public and private
pension funds, foundations and endowments, central banks, insurance
companies, sub-advisory arrangements, sovereign wealth funds and
individual portfolios.
Principal Global Investors manages approximately $577.4 billion
in assets on behalf of over 800 institutional clients located in
over 80 markets as well as retirement plans and individual clients,
reflecting our worldwide market reach and experience and our
commitment to high-quality research and service (as of September
30, 2021). To find out more, visit us at principalglobal.com.
The recent transactions profiled above are intended to
demonstrate the application of Principal Alternative Credit
investment strategy and represents middle marketing lending
transactions previously entered by Principal Alternative Credit.
There is no guarantee that any future transactions entered will
have the characteristics like the deals profiled above.
© 2022 Principal Financial Services, Inc. Principal®, Principal
Financial Group®, and Principal and the logomark design are
registered trademarks of Principal Financial Services, Inc., a
Principal Financial Group company, in the United States and are
trademarks and services marks of Principal Financial Services,
Inc., in various countries around the world.
______________________________ 1 Experience includes investment
management activities of predecessor firms beginning with the
investment department of Principal Life Insurance Company.
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version on businesswire.com: https://www.businesswire.com/news/home/20220119005810/en/
Shawn Finlen, 515-878-0507, finlen.shawn@principal.com
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