Acito: Direct lending due diligence resembles evaluating a bank, not hedge funds
Chris Acito · Chris Acito – Credit Where Credit is Due (Capital Allocators, EP.33) · Dec 11, 2017 · at 46:09
Chris Acito, CEO and CIO of Gapstow Capital Partners, discusses the fundamental differences allocators face when doing due diligence on private credit managers versus traditional hedge funds.
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“Credit investing is very different in that it. Looks more like a bank. It's particularly when you get into the new origination elements of investing or maybe prop trading to some extent, but just take on the direct lending side. When you walk in to evaluate a direct lender, you're not going to go far. If you're saying, you know, we'll talk to me about who's the trader and who's the head PM. They'll say, well, here are my 20 originators and here are my 20 underwriters.”
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