Private Credit

Over the past two decades, Private Credit has become an increasingly important part of the leveraged credit markets and, we believe, has provided an excellent source of long-term, stable income for investors. Lord Abbett’s experience investing across the leveraged credit markets over five decades uniquely positions us to continue innovating and delivering private credit solutions for our clients.

Our investment objective is to generate current income and, to a lesser extent, long-term capital appreciation by focusing on directly-originated senior secured loans, primarily to U.S. middle market companies and selectively to larger companies. We seek to achieve this objective by constructing a diversified investment portfolio with a focus on capital preservation and limiting downside risks.

At the core of our investment philosophy are patience, selectivity, and disciplined analysis. Our investment approach includes a highly selective, multi-stage review of all potential investment opportunities. We incorporate rigorous and disciplined credit analysis, careful structuring and negotiation of credit documentation, and active management of the portfolio through frequent interactions with management teams and equity owners. This robust, hands-on approach is designed to protect our investors’ capital by targeting companies with strong long term credit performance, and by mitigating downside risks through negotiating strong investor protections and proactive management of the portfolio.

A Pioneer in Leveraged Credit

• As a pioneer in the leveraged credit markets dating back to the 1970s, Lord Abbett has a multi-decade track record of lending to U.S. corporations. By combining the scale and depth of resources across our established global credit research team with our highly experienced private credit team, we have the deep investment expertise needed to deliver attractive investment performance to our clients.

Veteran Team with Private Credit Expertise

• Our dedicated team of seasoned private credit investors is comprised of investment professionals with extensive experience, including portfolio managers averaging more than 20 years of experience operating through multiple economic cycles.  The team employs a disciplined and rigorous multi-stage investment process that includes intensive credit analysis focused on capital preservation and post-closing monitoring. 

Differentiated Positioning in the Market

• We are well-positioned at the intersection of the private and public credit markets to identify unique insights into trends across leveraged finance and and access differentiated deal flow as borrowers increasingly choose private credit solutions.. Lord Abbett’s long history with borrowers and financial sponsors provides access to a broader landscape of potential private credit opportunities for both middle-market and larger companies. 

We believe these differentiators, along with our ability to maintain maximum selectivity, can allow us to deliver compelling returns to our investors over time.

The Lord Abbett private credit team is comprised of senior investment professionals with deep industry knowledge, having established and scaled multiple Private Credit businesses. This group of senior leaders is responsible for the day-to-day leadership of the broader team, which includes eight dedicated private credit investment professionals with differentiated experience across leveraged credit and middle market lending.