Building a Business Development Role in Private Credit

Описание: In this interview, Ryan Mullins, a Principal at Elm Park Capital, describes how he built the business development effort sourcing private credit investment opportunities.

The business development role is now common at many private equity firms and private credit funds, but it was previously a shared responsibility of the investment team. Ryan was early in developing this function as a specialized role. In this interview he discusses the challenges of building a biz dev role from scratch, and explains how the role has evolved since. He also offers advice for professionals looking to get into business development, or that are looking to transition from underwriting to sourcing investments.

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2:00 Moving to business development from an underwriting background
4:04 Two strategies: Working with sponsors and working directly with companies
5:30 Diligencing a private equity fund
6:00 Ideal investment opportunities
7:15 Getting comfortable with red flags
9:40 Getting comfortable with one-time issues
11:20 How the definition of an attractive opportunity evolves
12:10 Lending money at the fund level (PE fund)
13:45 The importance of messaging
17:10 "Boil the ocean" vs targeted approach
23:40 Why you need to know your capital partner
25:18 The conference circuit
27:10 The lender list
31:10 Pros and cons of sourcing via investment bankers
32:43 Sourcing through other lenders
34:10 Sourcing by city
42:10 The sourcing funnel
47:10 Understanding why you are losing deals
50:40 Sourcing funnel statistics (1,300 deals reviewed, 9 investments made)
51:51 Getting into business development

About Elm Park Capital: Elm Park Capital is a private debt investment firm that lends to lower middle market companies and private equity firms. We are an ideal partner for situations that require a creative and flexible approach.

Elm Park seeks to be an alternative capital provider for lower middle market companies and private equity firms requiring a creative partner for acquisitions, growth, refinancings, recapitalizations, and other special situations. Elm Park focuses on companies who cannot access capital from traditional financing sources due to size, industry challenges, or capital structure complexity.