Dianna Carr-Coletta, Managing Director and Partner of Alternatives Direct Lending for PGIM, joined Julie Cooling, Founder and CEO of RIA Channel, at iCapital Connect 2026 to discuss opportunities in direct lending and the importance of relationship building.
Carr-Coletta points to corporate direct lending, particularly the core middle market, as an area of opportunity. She notes that this segment includes both sponsored and non-sponsored companies generating $25 million to $75 million in EBITDA, with less than 10% owned by private equity sponsors.
Within the non-sponsored segment, Carr-Coletta emphasizes the importance of relationship building. She explains that maintaining a strong “boots on the ground” network is critical to accessing and optimizing differentiated deal flow.
Carr-Coletta also notes that, traditionally, bankers provide a revolver and an amortizing term loan. She explains that PGIM can complement bank financing and offer a less aggressive amortizing term loan, allowing companies to invest in their strategic goals rather than prioritizing debt service.
From a portfolio perspective, Carr-Coletta is hearing advisors recommend their clients allocate up to 10% to direct lending within fixed income. Rather than focusing on momentum selling or redemption, she encourages investors to view this senior secured, income-producing strategy as buy-and-hold allocation, with a focus on asset class strength and manager selection.
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