Principal Alternative Credit is a market leader in private credit with a heritage of serving clients for over 50 years.1 We focus on relationship lending by providing flexible financing solutions to both sponsor- backed and non-sponsored middle market companies throughout North America as well as global investment grade private debt issuers.
Strong industry track record
Over 150 years of credit investing experience among senior investment team.
Diverse origination capabilities
Dedicated coverage of more than 300 private equity firms and 40 agent bank relationships, plus non-sponsored loan origination direct with borrowers and co-lenders, through advisors and the global Principal client network.
Stable capital base
Stable and committed capital base from Principal’s balance sheet, as well as dedicated outside capital, offering a multiplier effect to capital commitment levels.
Flexible offering
Ability to invest up and down the capital structure and credit spectrum with a variety of financing offerings and structures.
Expansive capabilities
Robust originations, underwriting, and portfolio staff comprised of seasoned credit investors with experience across industry verticals and debt securities.
Our sustainable investing approach incorporates four foundational pillars of analysis embedded throughout the investment process: 1) Sustainability of the borrower’s business model, 2) Sustainability of the cash flows to support the investment, 3) Sustainability of capital formation, and 4) Sustainability of our role in the conversation.
By analyzing how traditional ESG factors inform each of the four pillars of sustainability, we believe that we will be able to appropriately identify key risk considerations and generate attractive risk-adjusted returns for clients while being mindful of the role we play as capital provider in enhancing corporate sustainability.
Business Model
Diligence around business model sustainability, competitive positioning, the value a borrower provides to all stakeholders, and key ESG-related risk considerations impacting a credit profile.
Cash Flows
Assessment of how a capital structure will be sustained over the life of a transaction, including investments required to support business and technology evolution.
Capital Formation
Deep analysis of trends in capital formation for businesses and industries, heavily influenced by sustainability considerations.
Engagement
Using our role as capital provider to engage with borrowers and sponsors to encourage proactive action which enhances long-term sustainability.
1Experience includes investment management activities of predecessor firms beginning with the investment department of Principal Life Insurance Company.
Past performance does not guarantee future results.
Private credit involves an investment in non-publicaly traded securities which are subject to illiquidity risk. Portfolios that invest in private credit may be leveraged and may engage in speculative investment practices that increase the risk of investment loss.
Fixed‐income investment options are subject to interest rate risk, and their value will decline as interest rates rise.
Principal Alternative Credit is an investment team within Principal Global Investors.