Episode 55: Middle Market Direct Lending – A Solution to the Search for Yield?

In this episode of the InsuranceAUM.com Podcast, host Stewart Foley, CFA, welcomes Tim Warrick of Principal Global Investors to explore the world of middle-market direct lending. They discuss what defines middle-market lending, the key differences between sponsored and non-sponsored transactions, and why this asset class has gained traction among insurers searching for yield.

Stewart and Tim examine the shift from banks to non-bank lenders, how middle-market lending has evolved post-COVID, and the liquidity premium investors can capture. They also break down the impact of monetary policy, passive investing trends, and the role of strong underwriting and covenants in maintaining credit discipline.