Podcast: Finding Niche Opportunities in Private Credit

Dave Breazzano, Head of the Polen Capital Credit Team, recently sat down with ION Analytics' Giovanni Amodeo to share his insights on the evolution of credit markets, the rise of private credit, and the importance of opportunistic investing.

Highlights:

• Dave summarizes the early days of his career, and how early lessons taught him the importance of underwriting skills, due diligence, and documentation in credit investing.
• Dave highlights the dynamic nature of credit markets, where inefficiencies are constantly being identified and capitalized on.
• They discuss the increasing trend of consolidation in the asset management industry, driven by the need for scale, institutional stability, and the ability to offer a broader range of solutions to clients. He noted that asset allocators seek fewer, more meaningful relationships with managers who can provide diversified investment solutions.
• Dave emphasized the value of an opportunistic approach, where investors can navigate different credit classifications to achieve the highest yield per unit of risk. This flexibility allows investors to adapt to changing market conditions and exploit inefficiencies as they arise.

Overall, Dave's insights highlight the importance of adaptability, opportunistic investing, and discipline in navigating the complex and evolving credit markets.

Watch the full interview here

Definitions:
Alpha - A measure of the difference between a portfolio’s actual returns and its expected performance, given its level of risk as measured by beta.
Beta - A measure of systematic risk with respect to a benchmark. Systematic risk is the tendency of the value of the portfolio and the value of benchmark to move together.
Defined Contribution Plan - A retirement plan in which employees allocate part of their paychecks to an account that funds their retirements.
Defined Benefit Plan - An employer-sponsored retirement plan where benefits are calculated on factors such as salary history and duration of employment.
40 Act Fund - A pooled investment vehicle offered by a registered investment company as defined in the 1940 Investment Companies Act (commonly referred to in the United States as the '40 Act or, in some instances, the Investment Company Act (ICA).
PE Firms - Private Equity Firms
Yield Per Unit of Risk - Also known as the Sharpe Ratio, this metric measures the excess return earned above the risk-free rate per unit of volatility. 
Yield Premium - a form of compensation that a mortgage broker, acting as the intermediary, receives from the originating lender for selling an interest rate to a borrower that is above the lender's par rate for which the borrower qualifies. 
CLO - Collateralized Loan Obligation, a single security backed by a pool of debt.

Investing involves risk, including possible loss of principal. The Fund is non-diversified, which means that a large portion of the Fund’s assets may be invested in one or few companies or sectors. The Fund could fluctuate in value more than a diversified fund. 

Investors should consider the investment objectives, risks, charges, and expenses of the Polen Credit Opportunities Fund carefully before investing. A prospectus with this and other information about the Fund may be obtained by calling 1-888-678-6024 or visiting the Materials tab. It should be read carefully before investing.

Polen Funds are distributed by Foreside Funds Distributors LLC., not affiliated with Polen Capital Management.

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