Insights

Your once-a-month insider on talent + alternative investments.

The Locke-Down is a once-monthly newsletter for our closest contacts on topics related to talent and alternative investments. The newsletter covers 3 simple things:

What we’re hearing in the market,

What we’re reading, and

What we’re up to.

We are in the market, daily, and want to share our insights. We want to hear from you. What information would be valuable? We’re always available. Get in touch with us.

What we’re hearing

Lender Finance – Last month we said ABF is still hot. While banks and Private Credit firms chase the broader Lender Finance pie, we are hearing about growth in financing Private Credit firms, themselves. Banks and Insurance companies are the incumbents, but there is a large market opportunity Direct Lenders and Private ABF firms.

In-house Fund Finance – To match the demand, we also see the growth of in-house fund financing teams. As private markets firms grow larger and more diverse, so do their financing needs. These teams structure financing solutions for their own funds, structure new fund vehicles, and can add alpha by providing bi-lateral financings to other companies’ funds.

Capital Solutions – Within Capital Solutions, hybrid capital is gaining traction. PIK debt, preferred equity, and subordinated instruments provide sponsors access liquidity without triggering exits. These tools preserved cash but drew scrutiny as deferred interest obligations grew. Liability management deals like covenant resets and debt-for-equity swaps also increased, requiring more tailored structuring and lender coordination.

What we’re reading

(Bloomberg) Private Equity Stuck in Limbo Gets Help From Direct Lenders

(Spotify) Silver Point Sees ‘Game Over’ for Some Private Debt Funds When Cycle Turns

What we’re up to

Product Management – We’re hiring in Product Management & Strategy, Private Credit, Asset-Based Finance, and PE Business Development.

Andrew Zilonis joined First Eagle Alternative Credit (FEAC) – Andrew joins the Direct Lending business as an Associate, focusing on underwriting and portfolio management of FEAC’s borrowers.

Alistair MacDiarmid joined New Mountain Capital (NMC) – Alistair joins the Credit business as an Associate, focusing on structuring financing solutions for NMC’s direct lending and CLO funds.

Sincerely,

The Locke Group

Your once-a-month insider on talent + alternative investments.

The Locke-Down is a once-monthly newsletter for our closest contacts on topics related to talent and alternative investments. The newsletter covers 3 simple things:

What we’re hearing in the market,

What we’re reading, and

What we’re up to.

We are in the market, daily, and want to share our insights. We want to hear from you. What information would be valuable? We’re always available. Get in touch with us.

What we’re hearing

PE is dialing-back acquisition goals, bolstering IR and sourcing – many PE firms have dialed back ambitious platform goals for 2025 given the slow deal-making environment. That said, we’re seeing an uptick in IR and BD hires to bolster fundraising and deal-sourcing capabilities.

Asset-backed Finance is still hot – we continue to see new starts and team-builds in private asset-backed finance (ABF). “Investment Grade” ABF for insurance capital is leading the trend, but opportunistic ABF is also growing.

Strategic hires are moving slowly – economic uncertainty has led some firms to slow play senior hires. We are not seeing hiring freezes, but some timelines have stretched out.

What we’re reading

Or listening to, in this case – Dry Powder Podcast: NAV Loans Under the Microscope w/ 17Capital’s Pierre-Antoine de Selancy (Spotify)

What we’re up to

Private ABF team build – In April, TLG hired a Principal as the first Private ABF investor for a ~$10bn AUM alternatives firm. The ABF strategy will be incubated in firm’s opportunistic credit strategy and target mid-teen returns. More on that hire and team build to follow.

Sincerely,

The Locke Group

(Bloomberg) The Supreme Court will make it harder to hire a diverse team

“Two cases pending before the justices involve affirmative action at universities, but there are clear implications for companies.”

Stay tuned for our comments on SCOTUS’ decision.

How a growing asset manager made its first ESG hire.

Read and share this case study here (PDF). 

Mandate and Challenges

Our client is a growing asset manager with a long history of value investing, including a top-ranked equity Global Value team which identified the need to integrate ESG factors into their investment process. TLG was engaged exclusively to identify and attract an ESG Analyst who would develop a new ESG framework, identify governance priorities, and integrate ESG factors into the Global Value team’s investment process.

Framework – as ESG factors are achieving mainstream consideration, many investors still do not have a framework for their integration. Our client needed to meet candidates with experience developing a framework from scratch.

Consensus – the effects of ESG factors on investment performance are still being debated. Our client needed candidates with strong leadership qualities, including the ability to engage skeptics and build consensus within the Global Value team and beyond, including the C-suite and other investment teams.

Turnaround – TLG was awarded the mandate after a retained search firm was unable to generate adequate results, including strong engagement from short-listed candidates. TLG needed to provide a fresh look and prompt turnaround.

Solution

TLG has mapped the market of ESG investment talent and developed relationships with relevant leaders in asset managers, consultancies, and ESG data providers. At the outset, our filter yielded a long list of 76 potential candidates who were not previously engaged.

We customized our screening interviews to capture our Client’s needs for experience in ESG framework development, positive leadership traits including consensus-building and advocacy, and genuine interest in the opportunity.

Success

Diverse short-list – TLG short-listed 13 profiles, 11 of which were selected for interviews (85%). 6 of those 11candidates are diverse (55%).

Finalists – 3 highly engaged finalists were identified 5 weeks from engagement.

Placement – with our help, the Company landed a passive candidate they were targeting from start to finish. Also a diversity candidate, she was pre-closed by TLG and accepted the offer within 24 hours of delivery. She starts in March.

Sean Locke is Managing Partner and Founder of TLG | slocke@locke-group.com

The Locke Group (TLG) is a specialist executive search firm which has served the financial industry since 2003. As a boutique, we are deeply invested in our clients – our care for their experience and the experience of their candidates is second to none – and we possess both the strength and flexibility to deliver results which help to power their business.

A critical hire for a growing energy investment banking team. 

Read and share this case study here (PDF). 

Mandate and Challenges

Our client is a global bank with a rapidly growing corporate and investment banking presence in the United States. As a part of their efforts to build their Energy Coverage business, the Company was successful in hiring senior bankers from bulge bracket American firms but needed to turn their attention to finding an experienced Vice President to “quarterback” new deals. The team wanted a Power & Utilities specialist from a top firm who would ideally have additional deal experience in renewable energy.

Solution

After consulting with the head of the team, TLG recommended a nation-wide search strategy targeting teams from major global banks as well as leading energy and infrastructure boutiques. We identified teams in major metro areas including New York, Houston, San Francisco, and Chicago.

To attract strong candidates, we leveraged our client’s inherent advantages – their collaborative culture, stability, sizeable balance sheet, and their growth trajectory. Most importantly, the role offered opportunities for professional development and promotion. We reached out to candidates within our existing network and beyond via referral and direct outreach.

Success

Within 10 days of receiving the mandate, TLG interviewed more than 10 Power & Utility Coverage VPs and presented a short list of 6 interested candidates to our Client. Each candidate hailed either from a major North American bank or a leading boutique.

5 of the 6 presented candidates were invited to interview and, after a short-but intense process, a finalist was identified and hired – 29 days after kicking-off the search.

The new hire came from a Chicago-based boutique which focuses on energy and infrastructure banking, with a specialty in renewable energy projects. His renewables experience proved critical to the early success of the team and he was promoted to Director in his second year with the firm.

Sean Locke is Managing Partner and Founder of TLG | slocke@locke-group.com

The Locke Group (TLG) is a specialist executive search firm which has served the financial industry since 2003. As a boutique, we are deeply invested in our clients – our care for their experience and the experience of their candidates is second to none – and we possess both the strength and flexibility to deliver results which help to power their business.