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In a recent fireside chat, Nishan Srinivasan, Head of Origination and Partner at Ambienta, discussed the outlook for private credit with Giovanni Amodeo. The conversation covered a range of topics, including Srinivasan’s background, the size of the fund, the shift from public markets to private credit, and the importance of environmental sustainability in investment decisions.

Srinivasan, who joined Ambienta almost a year ago, has a 20+ year career history with Credit Suisse. He emphasized that the shift from public markets to private credit is a structural change in the market, not a cyclical one. He also highlighted the importance of environmental sustainability as a growth area in the market.

Ambienta recently completed its first close, raising about half of its target of $500 million. The fund aims to make good investments in the environmental sustainability space. Srinivasan noted that the firm is an Article 9 fund, a status that demonstrates its commitment to environmental sustainability.

Srinivasan also discussed the importance of relationships in the private credit market. He noted that while the firm is new and has only completed two deals so far, its team has long-standing relationships in the market. He also emphasized the importance of partnering with companies that share the firm’s focus on environmental sustainability.

The chat also touched on the potential for the democratization of private assets. Srinivasan believes that this trend will extend to private credit in the next three to five years. He also discussed the firm’s deal origination process, noting that they had screened about 180 deals in the past 9 to 12 months.
In conclusion, Srinivasan emphasized the importance of embracing change and prioritizing family time. He believes that these are important truths that not everyone acts on.

Key timestamps:

00:09: Introduction to ION Influencers Fireside Chat
00:35: Background and Experience
01:30: Size and Strategy of the Fund
02:13: Investment Intention
02:51: Transition from Banking to Private Credit
03:58: Building Long-Term Relationships
05:02: Client Relationships in Private Credit
06:35: Learning for the New Role
07:46: Key Metrics and Focus Areas
08:53: Cycles and Risk Analysis
10:22: Private Credit Cycles
11:37: Risk-Adjusted Returns
12:28: Environmental Sustainability
13:14: Investor Persuasion
14:59: Focus Areas for Investors
16:32: Incentivization and Alignment
18:34: Incentivizing Management Teams
20:10: Negotiating with Sponsors
22:28: Ambienta’s Unique Value Proposition
23:35: Origination Process and Deal Screening
26:40: Deal Sizes and Partnerships
27:43: Deals from Intermediaries vs. Direct Originations
28:44: The Importance of Relationships in Deal Sourcing
29:48: Embracing Change and Personal Advice
30:45: Personal Insights and Prioritizing Family