Episode summary
Churchill Asset Management's Alona Gornick - the evolution of private credit
Alt Goes Mainstream
· · Hosts: Michael Sidgmore · Guests: Alona Gornick
Summary
Alona Gornick traced her path from public credit and investment banking into Churchill Asset Management and argued that private credit has changed most in scale, accessibility, and the size of managers. She said the underlying business remains relationship-driven, but larger platforms now matter more because they can write bigger checks, get into deals earlier, and offer sponsors simpler financing solutions. In her view, that scale can help a lender lead deals, negotiate terms, and support follow-on financing over time.
She also said the current market is being shaped by competition and high base rates, which are pushing tighter spreads and more flexible structures such as unitranche and PIK-heavy solutions. But she cautioned that underwriting discipline still matters, especially judging the sponsor as much as the business. On investor education, she described a “pop quiz” dynamic and said most wealth clients still need help understanding why they should move from fixed income into private credit, what they are giving up on liquidity, and how to place the asset in a portfolio.
Looking ahead, Gornick saw continued room for private credit growth because the borrower and investor demand are both large. Her biggest concern was not too much capital overall, but inexperienced or overly aggressive new entrants that could hurt manager-level outcomes and taint perceptions of the whole asset class. She also highlighted secondaries as a major future opportunity, especially in private equity, with private credit secondaries potentially interesting in certain structures.
Key takeaways
- Gornick said Churchill’s scale can make it a first-call lender in core middle market deals because sponsors want a single provider that can write larger checks.
- She argued that private credit competition is compressing spreads, but senior secured all-in yields around 8% to 9% can still be attractive.
- Gornick said the biggest underwriting risk is not just the deal, but whether the private equity sponsor has proven it will behave well in stress.
- She believes most wealth investors still come from fixed income and need education on liquidity tradeoffs, yield premium, and diversification.
- Her main concern is inexperienced new managers using aggressive structures or loose discipline, which could hurt perceptions of the whole asset class.
- She sees secondaries as an especially interesting forward opportunity, with private credit secondaries potentially viable in asset-based lending or less relationship-dependent structures.
Notable quotes
“The underlying business of what you actually do sourcing through relationshipdriven opportunities isn't really that different”
“size and scale matter a lot. It is a really big differentiator particularly where you are focused”
“I think that's been an interesting development right now. Outside of the spread compression, which is a natural thing to look at when you want to get more competitive and win a deal”
“underwriting that firm is as important, maybe even more important than just the underwriting or the deal structuring itself”
How the episode opens
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Welcome back to the Alcoas Mainstream podcast. Today's episode is with someone who has experienced the growth and evolution of the credit space from a number of different vantage points. We welcome Alona Gornick, a managing director, senior investment strategist, and co-head of the Chicago office for Churchill Asset Management, a $50 billion AUM provider of financing solutions to middle market private equity firms in their portfolio companies.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- evolution of credit investing
- opportunities and risks in private credit
- private credit bubble
- private credit product specialist role
- scale and permanent capital platforms
Companies and tickers mentioned
- Churchill Asset Management
- Nuveen
- TIAA
- Golden Gate Capital
- Oaktree Capital Management
Watch the episode
Watch “Churchill Asset Management's Alona Gornick - the evolution of private credit” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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Alt Goes Mainstream, this episode and its artwork belong to Michael Sidgmore. Octagon is not affiliated with the show; this page is an independent summary.
