#114 - Michael Gross: Private Credit Crowding, Complexity Alpha

Mar 17, 2026

Michael Gross, co-founder of SLR Capital Partners and former Apollo partner, is a pioneer of modern private credit. He explores how scaling has crowded parts of the market, why commoditization squeezes yields, and how complex strategies like asset‑based lending create differentiation. He also discusses monitoring, deal structure shifts, and where true opportunity may reemerge.

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ADVICE

Diversify Into Niche Private Credit Strategies

Diversify private credit exposure beyond cash-flow direct lending into niche, complex strategies to avoid crowded returns.
Michael lists options: drug royalties, life science, lender finance, receivable and inventory financing, and equipment lending.

INSIGHT

Complexity Premium Comes From Ongoing Operational Control

Complexity premium arises because asset-based and specialty finance require ongoing monitoring and infrastructure, reducing competition and raising returns.
SLR runs ~330 people for $13B AUM to manage monthly/weekly borrowing bases and active covenant monitoring.

ADVICE

Use ABL As A Liquidity Solution During Transitions

Use asset-based lending for liquidity where cash-flow loans fail; ABL finances working capital with inventory and receivables as collateral.
Example: SLR financed Revlon's working capital to get them through restructuring despite heavy senior debt.

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Michael is Co‑Founder of SLR Capital Partners, a private credit firm advising on $13B of total available capital (as of 9/30/25), and a pioneer of modern private credit, including as a founding partner of Apollo Global Management. We discuss how the private credit landscape has evolved as it has scaled and institutionalized, why parts of the market have become crowded, and how complex strategies like asset‑based lending may offer more compelling risk‑adjusted returns and true portfolio differentiation today.

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