Dedicated vs. generalist asset management: why it matters.
One question worth asking any private credit manager: is asset management handled by a dedicated team, or is it handled by teams who are also originating deals?
Fortress’s dedicated team of former operators and industry veterans brings a different level of engagement: advice from people who understand a borrower's business operationally, with hands-on experience of business planning and operational improvements.
Brian Stewart, Global Co-Head of Corporate Credit, believes that over time, those relationships can surface opportunities and challenges before they appear in monthly reports.
Watch to see what benefits a dedicated asset management platform can bring.
Brian Stewart:
At Fortress, we've built our experience in private direct lending over more than two decades. That experience gives us a perspective that leads to differentiated sourcing capabilities, investment decision making, and asset management.
We built something different, a dedicated asset management team of more than 15 people who work exclusively on our private lending portfolio. And here's the difference this makes. When market stress hits, having dedicated specialists means we can move quickly and make informed decisions.
Our team of professionals has the depth and experience to work proactively with management teams. Our team consists of former operators and industry veterans, not just financial analysts. And when borrowers face challenges, they're getting advice from people who understand their business operationally, not just financially. This dedicated approach isn't just about monitoring covenants or tracking financial metrics. Our asset managers work with management teams on business planning, optimizing capital requirements and structures, and identifying operational improvements that can drive overall performance.
This advantage compounds over time. These relationships mean we often hear about opportunities and challenges before they show up in monthly reports, and management teams know that Fortress consistently brings creativity and strong execution capabilities. That results in a significant portion of borrowers who work directly with us to extend their borrowing. We're not just lenders – we become strategic partners that borrowers want to work with.
This is what a dedicated platform looks like versus the generalist approach. It's not just about having more people, it's about having the right people with the right experience focused exclusively on credit investing. When you evaluate managers, ask about their asset management capabilities, ask whether they have dedicated teams, or if credit is just one piece of a broader platform.
