Video
Why is now a good time to invest in junior capital?
Junior capital - a complement to your core allocation to private credit.
We view the junior capital opportunity as generally attractive, regardless of economic cycles.
It is oftentimes implemented as a portfolio construction tool to complement a core senior debt allocation — offering floating rate, all-cash yield with a fixed rate, low-to-mid-teens opportunity in private credit that, while niche, serves as a powerful complement to your core private credit allocation.
We view the opportunity in today’s market to be quite attractive on a risk-adjusted return basis, primarily driven by private equity firms’ disposition for utilizing at least 50% equity in a capital structure of a performing company — using junior capital to support enterprise value growth and enhance risk-adjusted returns.
Speaker
Jason Strife
Head of Junior Capital & Private Equity Solutions
Churchill
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