Opportunities in Lower Middle Market Private Debt

This paper evaluates the Lower Middle Market (LMM) segment of the private debt market. Sunpointe Investments finds this segment attractive because it offers more inefficiencies and less competition, increasing the potential for better risk-adjusted returns and maintaining meaningful downside protection. Given the flood of new capital allocated to private debt since 2010, it is critical for investors to closely work with seasoned investment advisors with expertise in accessing top quality LMM private debt managers. Sunpointe specializes in “capacity constrained” private debt opportunities and differentiated lenders while maintaining relentless focus on constructing curated portfolios of diversified or uncorrelated strategies that generate attractive income while preserving principal.