David Lyon – Hybrid Capital Solutions for Private Assets (EP.471)

David Lyon is Managing Director and Head of Capital Solutions at Neuberger Berman, where he oversees $10 billion of AUM and deploys $2-3 billion each year originating large scale financing solutions to premier sponsor-backed companies. Over three decades, David was the first arbitrage analyst at Och-Ziff in the mid 1990s, an associate at one of the then largest private equity firms in the late 1990s, and a fundamental, distressed debt investor at quant hedge fund DE Shaw through the GFC. His experiences offer a deep understanding of both sides of the balance sheet, which he brought together in hybrid capital solutions over the last decade.

Our conversation traces his journey, lessons learned along the way, and perspectives on today's private markets. We then discuss the need for flexible capital solutions to address private equity liquidity challenges, competitive differentiation in the space, and the process for making it happen across sourcing, creating solutions, and managing risk. Along the way, David shares his refreshingly honest views on investor expectations, leveraged capital structures, good and bad investments, and incentives that help navigate an increasingly crowded marketplace.

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Editing and post-production work for this episode was provided by The Podcast Consultant (⁠https://thepodcastconsultant.com⁠)