Principal Asset Management’s direct lending business Principal Alternative Credit has passed $3bn (£2.44bn) in borrower commitments following a record-breaking year.
Principal Alternative Credit reported more than $925m in new deal volume, marking the platform’s most successful year since its inception in 2020.
“Surpassing $3bn in borrower commitments and achieving record deal volume for 2024 reflects not only the strength of our platform and team but also the growing investor demand for direct lending exposure in the lower and core middle market,” said Tim Warrick, managing director and group head at Principal Asset Management.
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“As direct lending continues to gain traction amid robust deal activity, we’re uniquely positioned to meet the needs of borrowers seeking flexible and reliable capital solutions.”
Principal Alternative Credit specialises in privately-negotiated debt transactions for both sponsor-backed and non-sponsored lower and core middle-market companies throughout North America.
Read more: Principal launches middle-market direct lending fund
Its typical facility sizes range from $25m to $500m, with hold sizes ranging from $20m to $75m. It mainly works with borrowers with $5m or more in EBITDA.
The company’s team specialise in a variety of sectors including healthcare, technology/software, business/financial services, industrials, consumer products/services and more.
Read more: Principal hires head of infrastructure debt to lead new division
