Direct Lending

Chris Pariseault hosts the first episode of "Alternative Angles," a podcast series on alternative investments, featuring David Gaito of Fidelity Investments and Ariel Goldblatt of StepStone Group. They discuss the direct lending market, which is a $1.2 trillion segment of the $1.8 trillion private debt market. Direct lending involves private debt issued by small and mid-sized companies, often due to inaccessibility to public markets. The conversation highlights the importance of culture, the inefficiencies in the market, and the need for a disciplined approach to investment. They also discuss the challenges and opportunities in the current market environment, including the impact of rising interest rates and the importance of diversification. Here is a breakdown of this episode: Introduction to the Direct Lending Market  David Gaito's Journey into Middle Market Credit, an all-weather asset class Ariel Goldblatt's Path to Direct Lending and the stability and resilience it brings to a portfolio The Investment Culture at Fidelity and StepStone  Selection and Evaluation of Direct Lending Managers  David Gaito on Fidelity's Direct Lending Strategy  Market Dynamics and Future Outlook  Conclusions and Final Thoughts