Welcome to another episode of the Private Equity Podcast, today I’m joined by Nayef Perry, Head of Direct Credit at Hamilton Lane. We dive into the state of the private credit market—where the opportunities are, how interest rates are shaping returns, and what investors need to watch out for. If you want a sharp, no-fluff breakdown of where private credit is heading and why it still has room to run, this one's for you.

Breakdown:

[00:00] Nayef Perry, Head of Direct Credit at Hamilton Lane, joins to discuss the private credit market, interest rates, and market outlook.

[00:30] Background: Born in Miami, ex-consultant, GE Capital, joined Hamilton Lane in 2013.

[01:13] Private credit’s golden era isn’t over—higher-for-longer rates mean higher yields for investors.

[02:11] Despite growth since 2008, private credit isn’t overcrowded—$1.4T credit gap vs equity.

[03:36] Add $600B+ in upcoming maturities, and there’s a $2T+ opportunity over next 3–5 years.

[05:30] Hamilton Lane’s deal drivers: add-ons, recapitalizations, and recovering LBO activity.

[06:52] Credit lags LBO recovery but Hamilton Lane sees strong deal flow via LP relationships.

[08:42] Democratization: retail access growing through evergreen funds—low minimums, high liquidity.

[11:01] Biggest concern is defaults, but default rates and distress ratios remain below averages.

[14:55] Credit shines across market cycles—positive performance every year since 1999.

[16:51] Tight performance band and low volatility make credit an all-weather asset.

[17:44] Investment discipline is key: big deal funnel + strict filters = consistent returns.

[19:03] Four core criteria: top-tier sponsors, #1/#2 market leaders, recession-resistant sectors, strong capital structures.

[21:01] Influences: WSJ daily, Poor Charlie’s Almanack, Red Notice, industry reports.

[23:54] Thanks for tuning in—subscribe and keep smashing it.

Connect with Nayef Here.

Thanks for tuning in!

Subscribe for more episodes on iTunes & Spotify

Got feedback or questions? Email Alex at alex.rawlings@raw-selection.com. Until next time—keep smashing it!

Description:
In this episode of The Private Equity Podcast, Alex Rawlings sits down with Ben Claremon, Partner at Devonshire Partners, a lower middle-market PE firm investing in micro and nano-cap businesses. Ben shares insights into why PE firms overlook small public companies, how microcap investing presents unique opportunities, and why a hedge fund mindset can be valuable in private equity. He also discusses the challenges of deal competition in the lower middle market, mitigating risks in microcap investments, and how Devonshire builds long-term relationships with business owners.

Breakdown:

[00:00] Welcome back to The Private Equity Podcast. Today, Alex speaks with Ben Claremon, Partner at Devonshire Partners, focusing on micro and nano-cap investments.

[00:30] Ben’s journey from real estate and hedge funds to private equity.

[01:00] Devonshire’s investment focus: $2M–$10M EBITDA, founder/family-led businesses.

[01:27] The crowded lower middle market and increased deal competition.

[02:25] Why PE firms ignore small public companies and why they shouldn’t.

[03:48] The lack of institutional capital in microcap public equities—an overlooked opportunity.

[05:16] Public vs. private small businesses—why public companies often have better governance.

[07:07] Devonshire’s hybrid approach: investing in public companies with a private equity mindset.

[09:00] How Devonshire builds relationships with microcap companies for long-term deals.

[10:28] Risks and challenges in microcap investing—and how Devonshire mitigates them.

[12:19] Why small public take-private deals are underexplored by PE.

[14:16] Devonshire’s screening process to filter out high-risk investments.

[16:10] Generalist vs. Specialist Investing—how Devonshire balances both.

[19:31] Lessons Ben brought from hedge funds into private equity.

[21:57] Ben’s podcast recommendations: Capital Allocators, Invest Like the Best, and his own Compounders Podcast.

[30:04] Connect with Ben:
🔹 Twitter: @benclaremon
🔹 Compounders Podcast on Spotify & iTunes
🔹 LinkedIn: Ben Claremon

[31:03] Closing remarks and thank you for tuning in!

Thanks for tuning in!

Subscribe for more episodes on iTunes & Spotify

Got feedback or questions? Email Alex at alex.rawlings@raw-selection.com. Until next time—keep smashing it!

Welcome back to The Private Equity Podcast, by Raw Selection. In this week's episode, Alex Rawlings speaks with Cari Lodge, a seasoned investor with 25 years in private equity secondaries. They explore the market’s rapid growth from $2 billion to $160 billion, the increasing need for liquidity, and how secondaries optimize portfolio management. Cari discusses GP-led secondaries, continuation funds, and the market’s evolution, offering key insights into future opportunities in this space.

Breakdown:

[00:00] Introduction to the episode and guest, Cari Lodge, Managing Director and Head of Secondaries at CF Private Equity.

[00:28] Cari’s background, her start in secondaries, and how the market has expanded from $2 billion to $160 billion.

[01:45] Common mistake in private equity: Holding assets too long. How increasing holding periods from 5.7 years to 6.7 years impacts returns.

[03:34] Why firms miss exit opportunities. The importance of DPI and how delaying exits can lead to the same returns years later.

[04:29] Explanation of secondaries for newcomers. The role of LP secondaries, GP-led solutions, and the growing demand for liquidity.

[06:53] The benefits of secondaries for investors, including diversification, shorter duration, and strong IRRs and ROIs.

[08:49] Demand for GP-led secondaries, continuation funds, and LP transactions. How secondaries are now part of active portfolio management.

[10:42] The future of secondaries. Market expected to grow from $160 billion to $200–220 billion in 2024, but constrained by capital and human resources.

[12:33] Challenges holding the market back. Capital constraints, lack of resources, and evolving perceptions of secondaries.

[14:21] Why Cari loves the secondaries market. Exposure to 1,200+ private equity funds, constant evolution, and a collaborative industry.

[17:12] Key trends in private equity. The impact of higher interest rates, valuations, and the growing focus on liquidity solutions.

[20:32] Secondaries' role in providing liquidity. Now contributing 15–20% of total private equity liquidity.

[22:28] How secondaries adapt to market cycles. Benefits in both up and down markets, shifting from a distress play to a mainstream strategy.

[23:22] Cari’s recommended reads: The Economist, Private Equity Analyst, and What It Takes by Steve Schwarzman.

[25:14] How to reach Cari Lodge. Best contact method: LinkedIn.

[25:45] Closing thoughts. Recap of insights and encouragement to subscribe to The Private Equity Podcast.

Thank you for tuning in!

Connect with Cari here.

To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.

Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to alex.rawlings@raw-selection.com.