CIFC Asset Management and its affiliates (collectively, CIFC), an alternative credit specialist serving institutional investors globally with more than $47 billion* in assets under management, today announced its direct lending strategy, which focuses on lending to U.S. lower middle-market companies, is now available on iCapital Marketplace.
“Private credit has become an increasingly important part of the conversation between wealth managers and clients seeking differentiated sources of income and diversification,” said Steve Vaccaro, CIFC chief executive officer. “As the asset class continues to evolve, advisors need the tools and expertise to evaluate opportunities and clearly communicate the differences across strategies. Expanding access to CIFC’s lower middle-market direct lending capabilities through leading wealth platforms is an important step in connecting wealth investors with a differentiated segment of private credit, with greater efficiency, transparency and institutional support.”
Creating Greater Access to Lower Middle-Market Direct Lending
Across its lower middle-market direct lending strategy, CIFC focuses on capital preservation and current income, supported by disciplined underwriting, active portfolio management and close engagement with repeat borrowers. The firm’s direct lending investments seek strong lender protections, including financial covenants and cash-pay interest. To date, the portfolio has included no cov-lite loans. CIFC believes this approach is especially important as higher borrower leverage, weaker documentation and greater reliance on non-cash income have contributed to stress in more crowded areas of the private credit market.
Homyar Choksi, senior managing director, direct lending chief investment officer, added, “As private credit continues to evolve, manager selection has become increasingly important for wealth managers and their clients. We believe the lower middle market remains one of the most compelling areas of the market, rewarding managers with sourcing reach and long-standing relationships, underwriting discipline, active portfolio management, and a long track record in that segment. By contrast, the upper end of the market has seen a growing concentration of capital, contributing to tighter spreads and weaker lender protections.”
CIFC’s lower middle-market direct lending strategy is focused on senior secured, floating-rate loans to U.S. companies with $50 million to $500 million in revenue, a segment the firm believes offers a broader borrower universe, more relationship-driven sourcing, stronger lender protections and more conservative loan structures than many core and upper-market direct lending strategies.
*AUM figures are as of August 31, 2026, and include committed capital, are estimates and are subject to change without notice.
