The Architecture of Liquidity at Garrington
In The Liquidity Advantage: What Investors Gain by Thinking Beyond Daily Access, we explored the real value behind less liquidity.
This week’s blog continues that conversation. Here, we focus on how Garrington manages liquidity across its portfolios and how we plan, forecast, and structure access to ensure that investors benefit from flexibility without compromising stability. The foundation of this work is the same disciplined approach that has supported our historical annualized returns (in the 8-12% range) while maintaining consistency across market cycles.
1. Liquidity – a Principle of the Strategy
At Garrington Private Credit, liquidity is built into the portfolio’s structure from the outset. Our approach begins with forecasting and forward planning that extend across the short to medium term, ensuring that available liquidity aligns naturally with expected repayments and new originations.
This discipline shapes every aspect of portfolio construction. Liquidity is not a feature applied at the end of the process but a principle that informs how we lend, how we structure duration, and how we manage cash flow. This structure is intended to support consistent and predictable liquidity.
It is reinforced by the natural maturity profile of the underlying loans.
2. Planned Duration
Monthly liquidity (with suitable notice) is possible only when the portfolio itself is designed to support it. Garrington’s strategy focuses on senior secured, short-duration lending, creating a natural rhythm of amortization and repayment that regularly refreshes liquidity.
Most loans mature within twelve months, and the portfolio’s weighted average term to maturity generally ranges between 200 and 365 days.
This pace of activity means capital is continually returning and being redeployed, creating a balance between investor access and the productive use of capital.
By aligning loan maturities with the fund’s liquidity profile, we ensure that access is structural rather than situational. The portfolio’s natural behavior aligns with investor needs, even as market conditions shift.
Short-duration lending also requires regular engagement with real operating businesses across North America. These ongoing relationships and the steady flow of information they provide help support the predictability and discipline that underpin the portfolio.
3. Tools That Support Liquidity Management
Liquidity management is strengthened by infrastructure, not by excess risk. Garrington Private Credit maintains access to institutional revolving credit facilities that align with the duration and cash flow profile of the loan portfolio. These facilities provide flexibility to bridge timing differences between borrower repayments, new originations, and investor activity.
We also maintain relationships with institutional counterparties who can participate in or purchase loans from the portfolio or pipeline when needed, providing an additional layer of flexibility and ensuring that liquidity can be sourced methodically if timing needs arise.
Within this framework, redemption requests are managed through the combined strength of short-duration loans, continuous portfolio turnover, institutional credit facilities, and participation relationships. The objective is always the same. Investor activity should be accommodated without disrupting portfolio construction or asset quality.
4. Collective Liquidity, Individual Access
Liquidity is managed collectively across Garrington’s institutional pooled funds rather than being isolated to a single vehicle. This coordinated approach ensures that liquidity resources can be allocated where they are most effective, helping to maintain stability across the broader platform.
At the same time, each investor continues to benefit from monthly access supported by a system designed to protect the integrity of the overall portfolio. Managing liquidity at this collective level reinforces the discipline of our planning, forecasting, and short-duration, asset-backed lending approach
5. Collective Liquidity, Individual Access
The outcome of this discipline is a liquidity framework that functions smoothly even in complex market environments. Short-duration lending, continuous forecasting, and institutional infrastructure all work together to create predictability in a market where liquidity is often misunderstood
Investors can request liquidity with confidence, knowing that their access is supported by the portfolio’s structure and the resources in place to manage timing. A robust structure, foresight, and operational expertise support liquidity at Garrington.
How to Evaluate Liquidity in Private Credit
Below are the questions we encourage investors and advisors to ask every manager, along with our perspective on them within Garrington’s approach.
1. What is the liquidity policy in plain language?
Monthly dealing with ninety days’ notice. Liquidity is actively managed through continuous forecasting and planning, ensuring a proactive approach.
2. How do loan maturities align with the liquidity profile?
Most loans mature within twelve months, and the portfolio’s weighted average term typically ranges between 200 and 365 days. This natural amortization supports planned liquidity events.
3. Where in the capital structure do you lend?
Primarily senior secured, asset-backed positions with first lien exposure supported by tangible collateral across multiple lending verticals.
4. What is the historical return and risk experience?
Our private credit strategy has historically generated consistent, uncorrelated returns in the eight to twelve percent annualized range, with a focus on capital preservation and low volatility.
5. How diversified is the portfolio?
Hundreds of loans across sectors and borrowers throughout North America, with portfolio construction focused on stability and balance rather than simply pursuing yield.
6. Who makes the decisions, and can investors access them?
As a boutique platform, investors have direct visibility to the credit team and senior leadership behind every loan. Smaller, focused managers also tend to raise only the capital they can deploy within a reasonable timeframe. This creates natural alignment with investors and fosters transparency and accountability, which can be challenging to achieve on very large platforms.
In short, these questions are not simply about understanding liquidity. They are about understanding discipline.
At Garrington, every element of our liquidity framework is designed around the assets we lend against, ensuring that investor access and portfolio management remain aligned through all market conditions.
The Garrington Perspective
Thoughtful liquidity management is what transforms flexibility into strength. It is what enables private credit to function like an institutional asset class rather than a collection of individual loans.
At Garrington, liquidity is an integral part of our architecture. It shapes how we lend, how we forecast, and how we protect investor access through every market environment.
