Debate: Direct Lending and the Evolution of Private Credit
Featuring: Alona Gornick, Managing Director & Senior Investment Strategist at Churchill Asset Management (an affiliate of Nuveen, the $1 trillion asset management arm of TIAA)
Alona Gornick joins Investment Wars to break down one of the fastest-growing corners of alternative investing: direct lending to private U.S. companies. In a wide-ranging conversation, she explores the history of private credit, how regulation and bank consolidation created opportunity for asset managers, and why institutions and now individual investors are turning to the space for income, diversification, and resilience. From the role of private equity sponsors to the rise of retail-friendly structures, this episode demystifies a complex but increasingly essential part of the investment landscape.
In today’s episode, we explore:
- The growth of private credit from niche strategy to a $2 trillion market
- How bank consolidation and post-GFC regulation opened the door for asset managers
- Why institutions embraced private credit for yield, diversification, and inflation protection
- The five key features of direct lending: income, floating-rate inflation hedge, diversification, low volatility, and resilience
- Concerns around “too much capital chasing deals”—and why demand still outstrips supply
- The rise of retail access via non-traded BDCs, interval funds, and innovative structures
- Why manager selection, track record in avoiding losses, and sourcing advantage are critical for investors
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IMPORTANT DISCLOSURE: Fountainhead sponsors the podcast to further education and critical thinking about the factors that affect markets and investing, and the podcast does not provide investment advice. Investment advice is offered only to clients of Fountainhead who have entered into an advisory agreement and with whom Fountainhead has identified individual objectives, risk tolerance, and other investment needs.
