The Fidelity approach to middle market direct lending

Head of Direct Lending David Gaito on today's market dynamics and the power of Fidelity's platform and research depth

Fidelity’s direct lending platform is built to navigate complexity, uncover value, and deliver institutional-grade execution.
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Key Takeaways

• David Gaito, Head of Direct Lending at Fidelity, believes that the opportunity in direct lending remains compelling, "especially at the lower end of the middle market."
• Gaito believes that the team's disciplined approach allows it to act decisively: "In dislocated markets, you need to take advantage of inefficiencies that can occur."
• Access to capital is a structural advantage for Fidelity's direct lending platform, which supports consistent funding and a competitive cost of capital across market cycles. "We are one of the largest counterparties to many of the largest banks in the world," Gaito says.
• Fidelity's integrated research model provides the team with a comprehensive view of credit risk. Even if our roughly 450 analysts do not cover a prospective borrower, "it's very rare that they don't cover suppliers, vendors, or the general industry," according to Gaito.