Churchill Launches Capital Solutions Strategy for PE-Backed Companies

Churchill Asset Management has launched a Capital Solutions strategy to provide flexible financing to private equity-backed middle-market companies as longer holding periods and a persistent exit backlog create more complex capital requirements.

The strategy will invest primarily in senior secured debt while selectively providing junior capital. Targeted uses include balance sheet optimization, complex buyouts, add-on acquisitions, maturity extensions and other customized transactions, according to Churchill.

Churchill parent TIAA supplied an initial capital commitment. The firm did not disclose its size.

Noah Charney joined Churchill as managing director and head of Capital Solutions. Based in New York, he will report jointly to Mat Linett, head of Senior Lending, and Jason Strife, head of Junior Capital and Private Equity Solutions. Charney also will serve on the strategy’s investment committee.

Charney previously spent more than 13 years at King Street Capital Management, where he was head of Capital Solutions and head of Capital Markets. Earlier positions included roles at Och-Ziff Capital Management, GoldenTree Asset Management and Bear Stearns.

Churchill also hired Robin Russell as a managing director focused on underwriting and transaction structuring. She previously worked at Cyrus Capital Partners, Bennett Capital Management, Onex Credit and Jefferies.

The launch comes as buyout holding periods at exit approach seven years, up from an average of five to six years between 2010 and 2021, according to Bain & Co. Nearly 40% of portfolio companies have been held for more than five years.

“As private equity holding periods continue to extend, sponsors increasingly need financing partners that can provide greater flexibility,” Strife said.

Churchill manages $66 billion in committed capital. Together with European sister company Arcmont Asset Management, it forms the $99 billion Nuveen Private Capital platform.