Ken Kencel, President & CEO, Churchill Asset Management met with Julie Cooling, Founder & CEO, RIA Channel to discuss opportunities in the private marketplace and how advisors can access risk-adjusted returns through an allocation to private credit.
Churchill Asset Management is the exclusive manager of private capital for Nuveen and currently manages $33 billion in committed capital. Specializing in private middle-market companies owned or controlled by private equity firms, Churchill touts deep relationships in the private equity community, which ultimately drives deal flow, investment activity, and scale.
“We are extraordinarily active in financing new deals right now,” says Kencel on the current state of private markets, noting that the vast majority of companies financed by Churchill have not been impacted by Covid or in many cases have done better because of Covid.
Kencel points to key opportunities in sectors like software, technology, business services, as well as healthcare and says that the percentage of deals devoted to those industries will only continue to increase. Selecting areas of investment opportunity is only one of the ways private equity investors and asset managers can deliver value.
As a significant limited partner, Churchill differentiates itself with its proprietary private equity relationships and first-hand knowledge of manager track record and due diligence. The goal is leveraging those relationships and experience with private equity managers into other direct opportunities such as co-investments, mezzanine financing, and senior lending, explains Kencel on Churchill’s competitive advantage. Kencel also points to Churchill’s unique ability to bring size and scale to the table in terms of number of investments and deals.
The Nuveen Churchill Direct Lending Corp. is a private vehicle designed to help advisors access the risk-adjusted return benefits and alpha of private capital investments. Made up of roughly 80% traditional middle market senior loans and up to 20% junior capital as well as private equity co-investments, the structure enables advisors to participate in the broader middle market and gain exposure to a diversified private capital portfolio.