Stewardship in a higher-for-longer rate environment

Higher reference rates have repriced risk across private capital. What appeared modestly levered under prior assumptions may carry different sensitivity today. Our investment committees have recalibrated return hurdles, stress cases, and covenant structures accordingly.

Stewardship in this context means more frequent board engagement on liquidity, working capital, and capital allocation priorities. We favor businesses with pricing power and resilient unit economics, attributes that show up in diligence long before they appear in headlines.

Partners who share a long-term orientation will find opportunity in dislocation. The firms that maintain standards through the cycle tend to emerge with stronger portfolios and deeper LP relationships.