Our direct lending business expands on a 50+ year private credit lending heritage and focuses on relationship lending by providing flexible financing solutions to both sponsor-backed and non-sponsored middle market companies throughout North America.

Principal Alternative Credit

Direct Lending

Delivering value through middle market lending

Principal Alternative Credit is the direct lending business within Principal Global Investors, one of the largest financial services and asset management firms in the world.

Our direct lending business expands on the 50+ year private credit lending heritage of Principal1, and focuses on relationship lending by providing flexible financing solutions to both sponsor-backed and non-sponsored middle market companies throughout North America.

Principal Alternative Credit

Direct Lending

Delivering value through middle market lending

Principal Alternative Credit is the direct lending business within Principal Global Investors, one of the largest financial services and asset management firms in the world. Our direct lending business expands on the 50+ year private credit lending heritage of Principal1, and focuses on relationship lending by providing flexible financing solutions to both sponsor-backed and non-sponsored middle market companies throughout North America.

Investment Approach


Defined Middle Market borrower size

Companies with EBITDA of $5 million to $50 million


Consistent execution

Standardized underwriting process offers speed and efficiency from initial review through loan funding


Communication and responsiveness

Value-add diligence throughout investment process enhances client's investment thesis


Flexible approach to investing

Ability to invest across the capital structure, from senior secured through junior subordinated securities


Experience across industries and through market cycles

Seasoned investment team underwrites and invests with conviction across broad array of sectors


Reliable partnerships

Supportive of borrowers throughout investment lifecycle, including add-on acquisitions

Value Proposition for Our Clients

  • Long-term committed capital from Principal Life Insurance Company
  • Evergreen and growing capital to support organic and inorganic growth
  • Relationship-centric firm
  • Streamlined credit approval process with all credit decisions (underwriting and portfolio related) made at the Principal Alternative Credit level
  • Deal team continuity from originations through underwriting and portfolio management

Investment Criteria

Investment style

Lower middle market and middle market direct lending

Investment size

$25 - $200 million target facility size

Company size

Minimum of $5.0 million of EBITDA

Situations

  • Leveraged buyouts
  • Refinancings
  • Growth capital
  • Recapitalizations
  • Add-on acquisitions
  • Minority buyouts

Investment structures

  • Senior (revolvers, TLs, DDTLs)
  • Senior Stretch
  • Unitranche
  • Second Lien
  • Mezzanine
  • Split-lien
  • Holdco Notes

Industry

Principal targets investment opportunities across a broad range of industries including:

  • Technology & Software
  • Healthcare
  • Business/Financial services
  • Consumer
  • Industrials

Geography

Primarily North America


Our Team

The Principal Alternative Credit team is comprised of seasoned lending professionals, many of whom have worked together for more than 20 years. Our team has extensive experience across originations, underwriting and portfolio management, with significant credit investing experience across all major industries and through multiple credit cycles.

Tim Warrick, Managing Director, Group Head

Tim Warrick | Managing Director, Group Head

Tim leads Principal's Direct Lending business and is a member of the Direct Lending Investment Committee. With over 30 years of experience, Tim has spent much of his career managing corporate and U.S. core plus portfolios. He previously served as Portfolio Management Team Leader with responsibility for overseeing portfolio management functions for all total return fixed income products. Tim also oversaw the corporate trading desk, was one of the first Portfolio Managers for Principal's general account and began his career at Principal as a fixed income credit analyst focused on both private and public credit. In addition to his responsibilities with the firm, Tim also spent two years with ReliaStar Investment Research, Inc., where he was an Analyst for multiple sectors, including mezzanine debt, leveraged bank loans, corporate bonds and asset-backed securities. Tim received an MBA from Drake University and a Bachelor's Degree in Accounting and Economics from Simpson College. Tim holds the Chartered Financial Analyst designation and is a member of the CFA Institute.

Matt Darrah, Managing Director, Head of Underwriting

Matt Darrah | Managing Director, Head of Underwriting

Matt leads underwriting efforts for Principal's Direct Lending strategy with responsibility for the team's underwriting philosophy and processes, as well as overseeing the underwriting of new direct loan investment opportunities. Matt is a member of the Direct Lending Investment Committee and has 15 years of experience in direct lending, having previously started the strategy for Capital Southwest, a publicly traded, lower middle market business development company. Matt was also a Portfolio Manager of the leveraged loan strategy for Petrus Asset Management, the primary investment vehicle for Ross Perot and his family. Matt received a Bachelor's Degree in finance from Southern Methodist University.

Nick Pierce, Director, Head of Operations

Nick Pierce | Director, Head of Operations

Nick leads all aspects of Operations for Principal Alternative Credit. In this role, Nick represents Principal Alternative Credit on matters related to business management, financials, IT, operations, compliance and human resources. Prior to this, Nick was a Product Specialist where he was responsible for fixed income strategy and product development, working closely with Principal Global Fixed Income Portfolio Management teams to service current and prospective clients. Nick also previously held the position of Senior Performance Analyst and Fixed Income Performance Leader at Principal Global Investors. Nick joined Principal in 2007 and has over 18 years of investment related experience. Nick holds a Bachelor's Degree in Finance from Iowa State University and has earned the right to use the Certificate in Investment Performance Measurement designation.

Jill Blosser, CPA - Chief Financial Officer

Jill Blosser, CPA | Chief Financial Officer

Jill is the Chief Financial Officer for Principal Alternative Credit. In this role, Jill oversees planning, implementation, and all finance activities, including financial accounting, financial planning, budgeting, and forecasting. Jill is responsible for all financial reporting for Principal Alternative Credit and corresponding client reporting requirements. Prior to this position, Jill was the Chief Accounting Officer for Principal Global Investors, where she was responsible for accounting policy, Sarbanes Oxley, GAAP/SAP investment reporting and securities operations for many of the investment portfolios of the Principal Financial Group, with specific focus on the general account of Principal Life Insurance Co. Jill joined Principal in 1992. Previously, she was an external auditor for Ernst & Young with a focus on financial services. Jill received an MBA from Drake University and a Bachelor's Degree in accounting from the University of Iowa. Jill has passed the NASD Series 7 and 27 examinations, and is also a member of the Iowa Society of CPAs and the American Institute of CPAs.

Originations

Brian Polomsky, Managing Director, Sponsor Originations

Brian Polomsky | Managing Director, Sponsor Originations

Brian is an Originator on Principal's Direct Lending Team and has more than 20 years of experience in private equity sponsor coverage and deal execution. Brian was previously with Antares Capital covering sponsors in the Midwest and East. Transactions included deals across varying industries including manufacturing, distribution, healthcare, business services, consumer, software and aerospace with debt facility sizes of $50-$500 million. He began his career with GE Capital, with roles in audit, underwriting and account management for private equity backed businesses. Brian holds a Bachelor's Degree from John Carroll University and an MBA from the University of Chicago Booth School of Business.

Brian Miazga, Managing Director, Sponsor Originations

Brian Miazga | Managing Director, Sponsor Originations

Brian is an Originator on Principal's Direct Lending Team and has more than 17 years of experience in private equity sponsor coverage and deal execution. Brian was previously with NXT Capital covering sponsors in the West, leading transactions across a variety of industries. Prior to NXT Capital, Brian held positions in both originations and underwriting at Fifth Street Finance and BMO Capital Markets. Brian began his finance career in the Corporate Debt Investment Banking group at William Blair & Company. Brian earned a Bachelor's Degree from Miami University and an MBA from the University of Chicago Booth School of Business.

Doug Koch, Managing Director, Sponsor Originations

Doug Koch | Managing Director, Sponsor Originations

Doug is an Originator on Principal's Direct Lending Team and has more than 20 years of experience in private equity sponsor coverage and deal execution. Doug was most recently at Antares Capital covering the South, Southeast, Texas and Colorado markets. Prior to Antares, he was with the Global Sponsor Finance group at GE Capital and Heller Financial. Doug holds a Bachelor's Degree from Indiana University, Kelley School of Business, and an MBA from Northwestern University, Kellogg School of Management.

Nick Ramtin, Director, Sponsor Originations

Nick Ramtin | Director, Sponsor Originations

Nick is an Originator on Principal's Direct Lending Team and has more than 10 years of experience in private equity sponsor coverage and deal execution. Nick was previously an investment banker in KeyBanc Capital Markets Financial Sponsors Group. Prior to KeyBanc, he was with Huntington National Bank leading the bank's coverage of healthcare private equity firms. Nick began his career with BMO Capital Markets. Nick earned a Bachelor's Degree from the University of Southern California’s Marshall School of Business.

Underwriting

Russ Rowley, CFA - Managing Director, Underwriting

Russ Rowley, CFA | Managing Director, Underwriting

Russ is an Underwriter within Principal's Direct Lending business and is responsible for the diligence and structuring of new investments along with the oversight of portfolio companies. Russ is a member of the Direct Lending Investment Committee. Prior to joining Principal Direct Lending, Russ was a Managing Director within Global Fixed Income Research with leadership responsibility for the global investment grade credit research team. He has also served as a Portfolio Manager with responsibility for multiple asset class portfolios managed on behalf of Principal Life Insurance Company. Before joining Principal in 1993, Russ was a consultant with PricewaterhouseCoopers. He received an MBA from the University of Illinois and a Bachelor's Degree in economics from Wheaton College. Russ holds the Chartered Financial Analyst designation and is a member of the CFA Institute.

Joe Sileo, Managing Director, Underwriting

Joe Sileo | Managing Director, Underwriting

Joe is an Underwriter within Principal's Direct Lending business and is responsible for the diligence and structuring of new investments along with the oversight of portfolio companies. Joe has over 20 years of experience within leveraged finance, capital markets and restructuring. Prior to joining Principal in 2021, Joe was the Head of Capital Markets for First Eagle's private credit team where he focused on originating, underwriting, structuring and syndicating transactions across a variety of industries. Joe was also a Managing Director at Citizens Bank within capital markets, focusing on private equity transactions and restructurings, and RBS Securities, where he was responsible for a $10 billion portfolio of distressed leveraged credits. Joe received a Bachelor's Degree in Economics from Bucknell University.

Ryan Fick, CFA - Director, Underwriting

Ryan Fick, CFA | Director, Underwriting

Ryan is an Underwriter within Principal's Direct Lending business and is responsible for the diligence and structuring of new investments along with the oversight of portfolio companies. Prior to joining the Direct Lending group, Ryan worked on the Principal High Yield team where he researched companies for high yield bond and leveraged loan strategies across a variety of Consumer, Communications, and Media industries. Prior to joining Principal in 2012, Ryan was an Analyst at Aviva Investors. Ryan earned a Bachelor's Degree in Business Finance and Accounting from Central College and an MBA from the Tippie College of Business at the University of Iowa. Ryan holds the Chartered Financial Analyst designation and is a member of the CFA Institute.

Laura Keffer, Director, Underwriting

Laura Keffer | Director, Underwriting

Laura is an Underwriter within Principal's Direct Lending business and is responsible for the diligence and structuring of new investments along with the oversight of portfolio companies. Laura has 15 years of experience in direct lending. Prior to joining Principal, Laura served as a Relationship Manager and Deal Screener within the Sponsor and Specialties Group at Capital One. Laura began her career with GE Capital, with roles in audit, underwriting and portfolio management for family-owned, publicly traded and private equity backed businesses. Laura holds a Bachelor's Degree from John Carroll University and an MBA from the University of Chicago Booth School of Business.

Jeff May, CFA - Vice President, Underwriting

Jeff May, CFA | Vice President, Underwriting

Jeff is an Underwriter within Principal's Direct Lending business and is responsible for the diligence and structuring of new investments along with the oversight of portfolio companies. Jeff joined Principal in 2009 and previously worked as a Senior Analyst on Principal's Investment Grade research team. During his time in Investment Grade, he researched investments across a range of companies in the Insurance, Consumer, Communications, Commodities, and Transportation industries. Jeff received a Bachelor's Degree in Finance from Iowa State University. Jeff holds the Chartered Financial Analyst designation and is a member of the CFA Institute.

Alexander Corbishley, Vice President, Underwriting

Alexander Corbishley | Vice President, Underwriting

Alexander is an Underwriter within Principal's Direct Lending business and is responsible for the structuring, underwriting and portfolio management of middle markets credits. Alexander has nearly 10 years of experience in leveraged finance, within both underwriting and portfolio management. Alexander joined Principal in 2021 and previously worked as an AVP for Capital One's diversified industries leveraged finance team as well as previous experience in Europe in middle market leveraged lending. Alexander holds the Chartered Financial Analyst designation and is a member of the CFA Institute.

Ahria Haghpeykar, Senior Associate, Underwriting

Ahria Haghpeykar | Senior Associate, Underwriting

Ahria joined the Principal Direct Lending team in 2020 and is responsible for underwriting, diligence, credit structuring, and active portfolio monitoring. Prior to joining Principal, Ahria worked as an Investment Banking Analyst at WoodRock & Co, where he was involved in numerous M&A and capital markets transactions across a broad range of industries. Ahria received a Bachelor’s Degree in Petroleum Engineering from Texas A&M University in College Station.

Jackie Osenbaugh, CFA - Associate, Underwriting

Jackie Osenbaugh, CFA | Associate, Underwriting

Jackie joined the Principal Direct Lending team in 2021 and is responsible for underwriting, diligence, credit structuring, and active portfolio monitoring. Prior to joining Principal, Jackie worked as an Analyst at BMO Harris Bank on the Sponsor Finance team where she was involved in underwriting various transactions in addition to ongoing portfolio monitoring responsibilities. Jackie earned a Bachelor's Degree in Economics from Taylor University and a Master’s in Finance from IE Business School (Madrid, Spain). Jackie holds the Chartered Financial Analyst designation and is a member of the CFA Institute.

Andrew Challenger, Analyst, Underwriting

Andrew Challenger | Analyst, Underwriting

Andrew joined the Principal Direct Lending team in 2021 and is responsible for underwriting, diligence, credit structuring, and active portfolio monitoring. Prior to joining Principal, Andrew worked as a Credit Analyst at American Equity, covering Metals & Mining, Infrastructure, Banking, and Insurance on the US Private Placement team. Prior to that, Andrew worked in the Transaction Advisory group at FTI Consulting. Andrew received a Bachelor's Degree from the University of Iowa in accounting. Andrew is a level three candidate in the CFA Program.

Legal

Karl B. Goodman, Internal Counsel

Karl B. Goodman | Internal Counsel

Karl is Counsel within the Principal Financial Group legal department and is a member of the Direct Lending Investment Committee, which he also serves as Secretary. His role includes legal and compliance review of direct lending business operations, investing transactions, and strategic initiatives for Principal Global Investors, LLC. Prior to joining Principal in 2018, Karl was a Vice President at Prospect Capital Management, LLC, where he was responsible for providing a range of regulatory, corporate governance, and transactional legal services to Prospect and its affiliates, including Prospect Capital Corporation, a publicly-traded Business Development Company. Prior to joining Prospect, Karl was an Associate in the New York City office of Morgan, Lewis & Bockius LLP, where he practiced in the Business and Finance Department. Karl earned his JD and LLM from the Duke University School of Law and his Bachelor's Degree in English Literature from Stanford University.

Mitch Maahs, Internal Counsel

Mitch Maahs | Internal Counsel

Mitch is Counsel with the Principal Financial Group legal department. Mitch's role includes advising on legal and regulatory aspects of fixed income investing transactions as well as legal support for the operations of Principal Global Investors, LLC. Mitch joined Principal in 2020, after spending over 6 years in private practice, where Mitch developed a broad transactional practice earning recognition from the Best Lawyers peer review publication and the Super Lawyers rating service. In private practice, Mitch represented clients of various industries, ranging from publicly-traded companies to startups, and including state and local banks, in mergers and acquisitions, commercial finance, and various other business transactions in addition to corporate organization, corporate governance, and general contract matters. Mitch earned his JD from the University of Iowa, and his Bachelor’s Degree in Accounting and Economics from the University of Northern Iowa. Mitch has also passed the uniform CPA examination.


Representative Transactions

Principal Alternative Credit maintains strong momentum in portfolio growth and has successfully closed transactions across a diversified range of industries, structures and sizes.

Rock Mountain Capital and Spark Orthodontics

Add-on Acquisition

 

October 2021

IGP and APCT

Leveraged Buyout

Documentation Agent

October 2021

Imperial Capital and Amerivet

Acquisition Financing

 

September 2021

ShoreView and 8020 Consulting

Leveraged Buyout

Joint Lead Arranger

August 2021

L2 Capital Partners and Crane 1

Leveraged Buyout

Documentation Agent

August 2021

SSC and IDimages

Recapitalization

Joint Lead Arranger

July 2021

Shorehill Capital and Flexpak

Recapitalization

Sole Lender & Administrative Agent

July 2021

L2 Capital Partners and GWS Tool Group

Add-on Acquisition

Documentation Agent

July 2021

Crescendo Capital Partners and Peltram Plumbing, LLC

Add-on Financing

 

July 2021

Redbird Capital Partners and Ampler

Recapitalization

Documentation Agent

July 2021

CapStreet and Surgical Notes

Add-on Acquisition

Sole Lender & Administrative Agent

July 2021

Finn Partners

Refinancing

Sole Lender & Administrative Agent

June 2021

SSC and Peak-Ryzex

Add-on Acquisition

 

May 2021

Tower Arch Capital and OSM Worldwide

Recapitalization

Documentation Agent

May 2021

New State Capital Partners and NWN

Add-on Acquisition

 

April 2021

Gauge Capital and Comprehensive EyeCare Partners

Add-on Acquisition

 

April 2021

SSC and Peak-Ryzex

Leveraged Buyout

Documentation Agent

March 2021

Alpine and ASG

Add-on Acquisition

 

January 2021

Rotunda Capital Partners and Amware

Add-on Acquisition

 

October 2020

OpenGate Capital and Aurotech

Leveraged Buyout

 

October 2020


The use of the sponsor's logo in no way is intended to represent or imply an endorsement by the sponsor. Highlighted transactions profiles are intended to demonstrate the application of Principal Alternative Credit investment strategy and represents middle marketing lending transactions previously entered by Principal Alternative Credit. There is no guarantee that any future transactions will have the characteristics similar to those profiled.

Why Invest with Principal Alternative Credit

  • Alignment of interest
    Principal invests alongside our investors in every deal including strategic co-investment in funds
  • ESG integration
    Engage borrowers to assess risks and opportunities, assigning an ESG score for every loan
  • Intentional portfolio construction
    Originate loans in targeted industries and avoid those prone to higher defaults
  • Diverse origination capabilities
    Dedicated regional coverage of more than 300 select sponsors plus non-sponsored loan origination direct with borrowers, through advisors and the Principal client network
  • Targeting lower and core middle market
    Borrower size of $5-$50 million EBITDA can potentially provide higher expected return and better structure than the upper middle market

Philosophy and Approach

We actively and intentionally manage risk of each loan and exposure across the portfolio. We prioritize appealing credit risk and structure rather than chasing yield.

Our team, process, and resources allow us to focus on less competitive aspects of the market, including lower middle market and non-sponsored opportunities. Our flexible solutions offered to borrowers and sponsors provide us a competitive advantage to originate loans that other lenders cannot address. Importantly, we underwrite to worst case scenario standards, based on historic cycles and potential negative future outcomes.

Alternative Credit Direct Lending thumbnail image

Alternative Credit Direct Lending

We invite you to take a closer look at our in-depth strategy profile and see how we align with our client's investment goals.

Download strategy profile


1Experience includes investment management activities of predecessor firms beginning with the investment department of Principal Life Insurance Company.

This material covers general information only and does not take account of any investor's investment objectives or financial situation and should not be construed as specific investment advice, a recommendation, or be relied on in any way as a guarantee, promise, forecast or prediction of future events regarding an investment or the markets in general. The opinions and predictions expressed are subject to change without prior notice. The information presented has been derived from sources believed to be accurate; however, we do not independently verify or guarantee its accuracy or validity. Any reference to a specific investment or security does not constitute a recommendation to buy, sell, or hold such investment or security, nor an indication that the investment manager or its affiliates has recommended a specific security for any client account. Subject to any contrary provisions of applicable law, the investment manager and its affiliates, and their officers, directors, employees, agents, disclaim any express or implied warranty of reliability or accuracy and any responsibility arising in any way (including by reason of negligence) for errors or omissions in the information or data provided.

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