The Luxury of Choice in Private Credit: Why Multi-Vertical Lending is Our Secret Sauce
At Garrington, we don’t believe in rigid, one-dimensional lending strategies. Instead, we embrace optionality, flexibility, and the ability to take what the market gives us. This secret sauce allows us to generate consistent, risk-adjusted returns while providing real financing solutions for businesses that need capital to grow.
We’ve built our private credit strategy around five distinct lending verticals, giving us the agility to pivot as markets shift, capitalize on emerging opportunities, and mitigate risk in ways that single-strategy lenders simply cannot. Instead of forcing capital into one lending box, we move between verticals—focusing on where the best deals are, not where we’re obligated to deploy capital.
This is what sets us apart. We are agnostic to loan type, industry and geography allowing us to be very particular with regards to each financing.
Over the next few months, we will break down each of our lending verticals—why they matter, how they work, opportunities we liked, and some that, while looking to be promising, we turned down. But before we get into the details, this blog is about why having multiple lending verticals is a strategic advantage in private credit—for our investors, referral partners, and the businesses we finance.
In private credit, we believe that the strongest players are those who can adapt rather than being locked into a single strategy. This adaptability is how we operate and the reason for our success.
For family offices, wealth advisors, and institutional investors, private credit is increasingly seen as a core allocation—delivering yield, downside protection, and uncorrelated returns in an environment where traditional fixed income remains challenged. However, not all private credit strategies are created equal.
Being able to lend in multiple verticals is not just a convenience—it is essential for achieving long-term success. Here’s why:
We Don’t Force Transactions—We Take What the Market Gives Us
One of the biggest risks in private credit is being forced to deploy capital into suboptimal transactions because a strategy is too narrow. If a lender is only focused on one vertical, they must either keep lending (even when the risk-adjusted returns aren’t compelling) or sit on dry powder, unable to put capital to work.
Our approach is different. We are entirely agnostic — we don’t need to lend into just one sector — and we never chase opportunities that don’t make sense. Instead, we focus on where the best prospects exist, ensuring we are always positioned to capture value while managing downside risk.
When one vertical becomes less attractive, we don’t have to wait for conditions to improve — instead we pivot to a more compelling opportunity. This is the luxury of choice.
Risk Mitigation Through Diversification
Private credit focuses on managing risk while aiming for attractive returns. A fund specializing in a limited toolbox or specific industry faces exposure to sector-specific shocks, including regulatory changes, market slowdowns, or shifts in borrower demand. By operating across multiple lending categories, we:
- Reduce concentration risk by diversifying among borrowers, industries, and collateral structures.
- Mitigate credit cycle volatility by dynamically allocating capital where risk-adjusted returns are most favorable.
- Enhance stability with a well-balanced portfolio that doesn’t rely on any single economic condition.
This strategic diversification allows us to generate consistent performance, even in volatile markets.
The Power of Agnostic Lending for Referral Partners
For wealth managers, business advisors, and financial intermediaries, a lending partner with a single product offering can only serve a fraction of their clients’ needs.
By contrast, we offer:
- A full spectrum of financing solutions — working capital, asset-backed loans, lender finance, and more.
- Tailored structures that fit unique situations rather than a one-size-fits-all approach.
- A partner who adapts to evolving client needs, ensuring we always have a suitable solution.
Instead of saying, “We don’t do that kind of loan,” we can say, “Let’s find the right structure for your client.”
A Private Credit Strategy Built for Long-Term Outperformance
For investors, this flexibility translates into:
- Stronger risk-adjusted returns, with exposure to multiple lending strategies.
- Resilience through market cycles, avoiding the pitfalls of single-vertical funds.
- A truly differentiated private credit strategy built for both stability and opportunity.
What’s Next: A Deep Dive into Our Lending Verticals
This is just the beginning of the conversation. Over the next few months, we’ll take a closer look at each of our lending verticals—explaining how we approach them, the types of opportunities we’ve leaned into, and those we’ve passed on when the risk-return profile wasn’t right.
In private credit, success isn’t about chasing deals—it’s about staying disciplined, being flexible, and taking what the market gives us. That’s how we operate, and that’s why we continue to deliver for our investors, referral partners, and borrowers.
Stay tuned.
April Fund Commentary