What LPs Actually Want From Private Credit Managers | Jamil McNeal, True North Advisors

Jamil McNeal, director of investments, private markets at True North Advisors, speaks with Adam Smallman at the PEI Private Credit New York Forum about what he looks for in private credit managers. He argues that sponsor-backed direct lending has proved more cyclical than the market assumed, with exposure flowing through from wherever private equity has been deploying heavily. He also covers why evergreen structures make up roughly 60 percent of True North's book, what could raise that figure, and his avoidance of managers who stack leverage onto high-returning strategies.

1. McNeal says sponsor-backed direct lending has been more cyclical than the market assumed, with exposure flowing through from where private equity has deployed heavily.
2. Evergreen structures account for around 60 percent of True North's book, and he discusses what could take that figure higher.
3. He avoids managers who stack leverage onto high-returning strategies.
4. He says tailwinds carry risks, including managers pushing risk to show alpha and complacency in diligence when returns look comfortable.