CIFC Brings Lower-Middle-Market Credit Strategy to iCapital

CIFC Asset Management has made its lower-middle-market direct-lending strategy available through iCapital Marketplace, expanding the alternative credit manager’s reach into the private wealth channel.

The strategy originates senior-secured, floating-rate loans to U.S. companies with annual revenue of $50 million to $500 million.

CIFC said the portfolio is designed to emphasize current income and capital preservation through financial covenants, cash-pay interest and active monitoring. It has included no covenant-lite loans to date, the firm said.

“Private credit has become an increasingly important part of the conversation between wealth managers and clients seeking differentiated sources of income and diversification,” CEO Steve Vaccaro said. He added that advisors need resources to evaluate and explain the differences among lending strategies.

Homyar Choksi, CIFC’s direct-lending chief investment officer, said capital has become increasingly concentrated at the upper end of direct lending, contributing to tighter spreads and weaker lender protections.

CIFC argues that the lower middle market offers a larger borrower universe, relationship-driven sourcing and more conservative structures. Smaller companies, however, may have narrower product lines, less-diversified revenue and fewer financing alternatives than larger borrowers.

The firm manages more than $47 billion and serves over 500 institutional investors globally.

The iCapital Marketplace provides wealth managers access to alternative-investment products and services. The platform lists more than 1,358 asset managers, supports 2,644 funds and reports more than $1.2 trillion in global platform assets.