Private Credit Differences at Certain Firms?

They can do the same things and often are on the same deals. The main way to segment the market is going to be syndicated loans vs direct lending. And then the size of the target company. Smaller target companies generally mean wider spreads. And direct lending prices wider than syndicated loans. If your concern is pay… the simple way to look at it is: higher yields and more aum per employee will lead to more pay. The exception is probably insurance companies. They have a lot of aum, but most of it is concentrated in investment grade debt. And even if you're on a high yield team within that company, your comp is probably going to be anchored down by coworkers.

PE funds usually do riskier and smaller deals. A lot of Insurance companies invest in syndicated loans. Don’t know much of direct lending at insurance companies. But I’d be surprised if they were big players in the space. I think they’re more focused manager selection or co-invest within direct lending.

PIMCO’s alt credit/special sits team does direct lending and focuses on high yield idiosyncratic opportunities. Mezzanine, preferred equity, distressed, etc. Similar to the private credit/special sits done at other MF PC arms. Growing very fast given low yields as well.