InsuranceAUM

As private credit enters a more demanding phase, Rick Miller, Group Managing Director and Chief Investment Officer of the TCW Private Credit Group, discusses how middle market lending has evolved and why underwriting discipline, portfolio management, and principal preservation are becoming increasingly important.

 

The conversation also covers concentration risk, software exposure, sponsor-backed lending, and the importance of manager selection. Rick explains how TCW approaches senior secured lending, manages underperforming credits, and structures private credit solutions around the needs of insurance company investors.

Jason Gelberd, Partner, Chief Operating Officer and Co-Head of Direct Lending, and Tim Kim, Partner and Head of Specialty Finance at Manulife Comvest Credit Partners, discuss what sits beneath the broad asset-based finance label, from collateral types and capital structure to first lien, second lien, and equity strategies.

 

The conversation also covers advance rates, duration, downside protection, fraud risk, cash controls, sourcing, underwriting, and portfolio monitoring. Jason and Tim explain why manager experience and structural discipline matter, and what investors should focus on when evaluating ABF opportunities.

Artificial intelligence is reshaping the investment landscape across technology, infrastructure, and credit markets, creating both new opportunities and new sources of risk. Jeff Hobbs, Chief Investment Officer for Fixed Income at Voya Investment Management, discusses how investors can think about the AI ecosystem across chips, data centers, power infrastructure, hyperscalers, and public and private credit.

 

The conversation also examines where risk may be underpriced, how correlations can build across insurance portfolios, and why underwriting discipline, lease counterparties, and financing structures matter. Jeff also shares his perspective on duration, relative value, and how insurers can position portfolios as AI-driven capital spending continues to expand.

Mark Jochims, Head of European Private Credit at Morgan Stanley Investment Management, joins the InsuranceAUM.com Podcast to explore the evolution of European private credit and the expanding role of direct lenders across the region.

 

Mark explains how Europe differs from the U.S. private credit market, including its more fragmented banking system, slower pace of bank disintermediation, different borrowers and jurisdictions, and distinct supply-and-demand dynamics. He discusses why Europe should not necessarily be viewed as better than the U.S., but as a potentially differentiated source of portfolio diversification for insurance investors.

 

The conversation also examines the structure of direct lending, the downside protection offered by senior positions in the capital structure, and why private credit can serve as an income-generating diversifier within an insurer portfolio. Mark shares his perspective on evaluating AI exposure from the bottom up, the challenges of distinguishing among private credit managers as lending becomes increasingly competitive, and why sourcing and selectivity remain critical to long-term performance.

 

Mark also looks ahead at the European market, where bank lending still represents a significant share of financing and continued disintermediation may create further opportunities for private lenders. He discusses what insurers should consider when evaluating not only investment portfolios, but also the governance, ownership and stability of the managers behind them.

Pranay Subedi, Associate Portfolio Manager in Fixed Income at T. Rowe Price, examines the health of the private credit market and how risk has shifted since the Global Financial Crisis. The discussion covers the evolution of BDCs and other private credit vehicles, why credit risk has migrated away from bank balance sheets, and whether today’s system may be more resilient than the pre-GFC framework.

 

The conversation also explores recent volatility in private credit, including redemption pressure in non-traded BDCs, liquidity risk, software exposure, and the potential impact of AI disruption. Pranay explains how he evaluates managers, why underwriting quality and funding structures matter, and what investors should watch as credit losses begin to normalize and the market heads into 2027.

Margaret McKnight, Partner and Head of Portfolio Solutions at StepStone Real Estate, and Brendan MacDonald, Partner and Chief Operating Officer at StepStone Real Estate, discuss why the current real estate reset may be creating an attractive opportunity set for secondaries investors. They explore how higher rates have pressured valuations, leverage, liquidity, and transaction activity, while increasing demand for GP-led secondaries, recapitalizations, and other capital solutions.

 

The conversation also covers real estate’s role in portfolio diversification and inflation protection, the impact of debt maturities and aging fund structures, and how StepStone uses global manager relationships, data, and underwriting capabilities to identify opportunities across markets and property types. They also discuss how insurance investors can think about accessing the asset class across different risk and return profiles.

David Ross, Managing Director and Head of Private Credit at Northleaf, joins the InsuranceAUM Podcast to discuss the current state of private credit and how investors are navigating a market shaped by volatility, elevated base rates, changing capital flows and new risks associated with artificial intelligence. He explores why underlying portfolio performance remains resilient overall, where pockets of stress are emerging and how investors should evaluate returns on a loss-adjusted basis.

 

David also discusses how Northleaf is assessing AI risk across individual companies and industries, why diversification and selectivity remain critical, and how periods of market dislocation can create opportunities for patient capital. The conversation also examines the evolving relationship between insurers and private credit managers, including the growth of customized mandates, co-investments and bespoke capital partnerships.

 

Looking ahead to 2027, David shares why disciplined underwriting, active risk management and a focus on underlying company fundamentals will remain central to navigating the next phase of the private credit market.

The lines between broadly syndicated loans and private credit are becoming increasingly blurred as borrowers gain more flexibility in how they access capital. Taylor Boswell, Head of Credit Origination and Research at AGL Credit, explains what is driving that convergence, why larger borrowers can offer attractive through-cycle characteristics, and how portfolio construction can influence long-term credit outcomes.

 

Beyond market convergence, the discussion looks at private credit structures, expected losses, bank and asset manager partnerships, and differentiated sourcing. Taylor also shares AGL Credit’s perspective on AI-related risks across software, data centers, and corporate borrowers, and why disciplined underwriting and active portfolio management remain essential.

Greg Eudicone, Head of Global Real Estate Client Portfolio Management at Barings, discusses how the commercial real estate opportunity set is evolving across geographies, sectors, and the capital structure. He shares Barings’ perspective on why real estate has become a more selective market, with meaningful dispersion across office, multifamily, industrial, retail, and alternative property types.

 

The conversation also explores relative value between real estate debt and equity, opportunities created by bank retrenchment, and the growing role of healthcare, manufactured housing, student housing, and other specialized sectors. Greg also discusses how insurers are approaching real estate credit, the importance of active asset management and origination capabilities, and why disciplined underwriting may matter more as volatility persists.

Aryeh “Ari” Landsberg, Managing Director at 17Capital, joins the InsuranceAUM.com Podcast to explore how NAV finance has evolved from a specialized private markets solution into an increasingly mainstream portfolio management tool. He explains the fundamentals of NAV financing, including how lenders provide capital against diversified portfolios of mature private equity investments rather than relying on the performance of a single company.

 

The conversation examines the forces driving greater adoption of NAV finance, from changing liquidity conditions and longer private equity holding periods to the need for flexible capital that can support additional investment in existing portfolio companies. Ari also walks through 17Capital’s underwriting approach, including diversification, seniority, low loan-to-value ratios, fundamental company analysis, and ongoing monitoring of portfolio performance and risk.

 

Ari also discusses where he sees the NAV finance market heading as private credit continues to expand and sponsors hold investments for longer periods. He explains how NAV financing can support add-on acquisitions, talent investment, refinancing, and other strategies intended to maximize portfolio company value, while sharing his perspective on the importance of discipline, collaboration, intellectual curiosity, and adaptability as the market continues to mature.