In the latest ION Influencers Fireside Chat, Giovanni Amodeo sat down with Putri Pascualy, Senior Managing Director and Client Portfolio Manager at Man Varagon, to discuss the evolving landscape of private credit and how investors can stay ahead in a complex, fast-scaling market.

Key Topics Discussed:

1. Evolution and Strategy at Man Varagon

• Man Group’s acquisition of Varagon Capital Partners has bolstered its presence in private credit.

• Varagon specializes in lending to U.S. small and mid-sized enterprises (SMEs).

• Pascualy brings deep experience from roles at TPG Angelo Gordon, KKR, and fund-of-funds startups, bridging LP and GP perspectives.

2. The Rise of Buy-and-Build Strategies

• Pascualy predicts “buy-and-build” will outpace platform deals over the next 18 months.

• She emphasizes the need for scale and speed to market in private credit—factors that favor consolidation and aggregation strategies.

3. Bullish on the Core Middle Market

• While upper middle market risks dominate headlines, Pascualy is most optimistic about core middle market lending, particularly in underexplored regions like Europe.

• She highlights misconceptions around private credit risk, advocating for more nuanced analysis by investors.

4. Sector Specialists vs. Generalists

• Man Varagon maintains a dedicated healthcare group, a rarity in a largely generalist-dominated industry.

• Pascualy believes most firms will remain generalist unless they are large enough to operate like a sector-focused private bank.

5. Private Credit Secondaries: Growth Outlook

• Direct lending secondaries will see steady growth, driven by increased investor allocations.

• Niche strategies, on the other hand, may experience early-stage growth spurts due to their capacity-constrained nature.

6. Future Writing Aspirations

• Professionally, Pascualy is interested in authoring a book on private credit’s evolution beyond direct lending.

• Personally, she dreams of writing fiction—envisioning a “Succession-meets-Billions” drama with a female lead.

Takeaways for Capital Markets Professionals:

• Private credit is no longer niche—it’s moving into mainstream portfolios with higher allocations.

• Adaptability and collaboration are becoming key traits for success in a more interconnected investment ecosystem.

• There’s untapped opportunity in less saturated markets and middle-market lending.

• Expect a continued blurring of lines between traditional banking and private credit as firms scale.

Key timestamps:

00:07 Introduction to the Fireside Chat
02:19 Historical Context of Private Credit Cycles
04:52 Current Signs in the Private Credit Market
08:14 Defining the Middle Market in Private Credit
12:53 The Role of Banks in Private Credit
17:57 Evolution of Sourcing in Private Credit
19:57 Future of Transparency in Private Credit
22:21 Evolving Roles in Private Credit
24:03 Cultural Shifts in Financial Firms
25:14 Market Trends: Platform Deals vs. Buy and Build
26:51 Sector Specialization in Private Credit
27:57 Growth Trends in Direct Lending
28:48 Exploring New Literary Ventures