Damien Dwin makes a compelling case that the private credit industry has been looking in all the wrong places. As President and CEO of Lafayette Square, Dwin argues that while the sector has become fixated on large, private equity-sponsored deals in affluent markets, it has systematically overlooked a massive opportunity hiding in plain sight: the 140,000 non-sponsored, family-founded and entrepreneur-owned businesses that form the backbone of America’s working-class communities. These companies, representing 80% of the middle market and employing 50 million Americans, have been artificially starved of capital despite offering potentially superior risk-adjusted returns.
In this episode, Dwin challenges the conventional wisdom that bigger deals with institutional backing are inherently safer investments. Drawing on compelling data that shows leverage and debt coverage matter far more than company size in predicting defaults, he presents a contrarian thesis that non-sponsored lending isn’t just good business—it’s essential for economic stability and represents what he calls “the largest domestic investment opportunity of our lifetime.” As the Trump administration signals support for domestic manufacturing and small business through initiatives like the Made in America Manufacturing Initiative, Dwin believes investors who continue to export capital to affluent markets are missing both a patriotic duty and a lucrative opportunity to bet on America’s working-class backbone.
