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Strategy differentiators

  • Historically attractive default rates
    Premium to public bond portfolio, with 10-year cumulative default of less than 1%.

  • Alignment of interest
    Principal Life Insurance Company invests alongside all our third-party investors in most private placements.

  • Long-established origination capabilities
    Over 40 agent banks supply deal intake pipeline of nearly 200 deals a year.

  • Covenant-focused
    Covenants maximize downside recoveries and drive fee income in weak credit markets, which helps to improve overall returns.

  • Portfolio diversification benefits
    Most of our investments are in non-public borrowers, often with leading positions in niche markets.

  • ESG integration
    Assess risks and opportunities, assigning an ESG score for every investment.

Investment criteria

Companies with annual revenue of >$500mm. Typically $1-$5 billion market capitalization
Investment grade credit rating
3.5x maximum (Industrial and service company borrowers). Debt to assets max of 50% (Utilities, REITs, and Infrastructure borrowers)
Typically secured, senior unsecured, or guaranteed
Can be 3-30 years, with emphasis on 7-15 years
Lending to most sectors
Global, including U.S. and non-U.S. currency
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Closing on up to $2B annually in traditional private placements, Project Finance, Infrastructure, CTLs, and Ground Leases, demonstrating our extensive capabilities in the investment grade private credit market.

Get to know our investment team

Principal Alternative Credit

The Principal Alternative Credit team is comprised of seasoned lending professionals, many of whom have worked together for more than 20 years. We have extensive experience across originations, underwriting, and portfolio management, with significant credit investing experience across all major industries and through multiple credit cycles.

PM Title
Portfolio Manager
Scott Bennett
35 years of experience
PM Title
Portfolio Manager
Rob Dowil
26 years of experience
PM Title
Managing Director, Head of IG Private Credit
Michael Zorich, CFA
27 years of experience
Learn more

Get the latest insights.

Past performance does not guarantee future results.

Investment criteria/guidelines are subject to change.

Private credit involves an investment in non-publicaly traded securities which are subject to illiquidity risk. Portfolios that invest in private credit may be leveraged and may engage in speculative investment practices that increase the risk of investment loss.

ESG integration is considered across all actively managed asset classes, with the approach determined by each investment group's process. This information is specific to the strategies managed by the individuals providing this content and various investment teams across Principal may have differing views of this approach.

Fixed‐income investment options are subject to interest rate risk, and their value will decline as interest rates rise.

Principal Alternative Credit is an investment team within Principal Global Investors.