Connected Platform Capital Pivot
Build broad information and execution capacity, then move capital toward dislocations.
- Difficulty
- Expert
- Time to result
- ~ongoing to results
- Steps
- 6
- Confidence
- 96%
The Connected Platform Capital Pivot treats breadth as an option rather than an instruction to invest everywhere. The organization builds a wide origination funnel spanning public credit, direct lending, real assets, private equity relationships, and multiple geographies. Information from these channels is shared so that developments in one market can reveal opportunities in another. Flexible mandates and prepared specialist teams then allow capital to move quickly when volatility creates unusually attractive pricing. The platform's value comes from combining advance preparation, broad visibility, and selective execution: it does not need to predict the exact dislocation, but it must be ready to recognize and prosecute it. Scale supports access and execution, while disciplined comparison of risk-adjusted returns prevents breadth from becoming indiscriminate asset gathering.
Origin
Jenkins adapted lessons from building a product-agnostic private investment platform at the Canada Pension Plan Investment Board to Carlyle's global credit business.
Core principles
- 01Broaden the opportunity funnel before increasing selectivity.
- 02Connect public, private, geographic, and asset-level information flows.
- 03Remain agnostic to product silos when comparing risk-adjusted returns.
- 04Build execution capabilities before market dislocations occur.
- 05Move capital toward opportunities rather than forcing deployment into one mandate.
How to run it
- 1
Create a broad funnel
Develop sourcing channels across asset classes, borrower types, and regions. The goal is to see enough opportunities to remain selective rather than to deploy into every channel.
Pro tip Track both the number and quality of opportunities produced by each channel.
Watch out A broad funnel without underwriting capacity creates noise rather than advantage.
- 2
Connect information flows
Share relevant intelligence from public markets, private equity, infrastructure, real estate, and operating relationships. Use those intersections to improve sourcing and underwriting.
Pro tip Create regular cross-strategy reviews focused on actionable changes rather than general market commentary.
Watch out Organizational silos can neutralize the value of having multiple strategies.
- 3
Prepare execution capabilities
Build specialist teams, legal structures, and investment mandates before volatility creates an opportunity. Ensure each team can evaluate and close transactions in its domain.
Pro tip Run scenario exercises for likely market dislocations.
Watch out Capital flexibility is useless if approval and execution processes cannot move quickly.
- 4
Compare risk-adjusted opportunities
Evaluate opportunities using a common risk-return lens rather than defending predetermined product allocations. Consider price, downside, liquidity, duration, and portfolio fit.
Pro tip Use a shared investment template across strategies while preserving specialist analysis.
Watch out Nominal yields cannot be compared without accounting for different risks and liquidity.
- 5
Pivot into dislocations
When pricing moves sharply without a corresponding collapse in fundamentals, direct capital to the affected market. Use the platform's local expertise to distinguish temporary dislocation from permanent impairment.
Pro tip Define valuation and fundamental triggers in advance.
Watch out Do not assume every falling price is an opportunity.
- 6
Review and rebalance
Monitor whether the selected opportunity has normalized and whether other markets now offer better terms. Reallocate future deployment as conditions evolve.
Pro tip Separate a successful thesis from attachment to the strategy that produced it.
Watch out Temporary pivots can become permanent allocations without deliberate review.
In the wild
During the March-April market dislocation, a connected platform shifts from regular direct and opportunistic lending into secondary leveraged loans. A major communications company's loan trades near 72 despite an equity market capitalization that supports confidence in repayment, creating an attractive entry point.
→ Prepared execution capacity allows the investor to buy fundamentally sound credit at a distressed market price.
After US capital markets stabilize quickly, a global platform observes that Europe's multiple jurisdictions are slowing its recovery. Regional specialists identify transactions that remain attractively priced after comparable US opportunities have normalized.
→ Geographic connectivity extends the opportunity window beyond the investor's home market.
Common mistakes
Confusing breadth with deployment
Operating in many markets does not require investing in all of them. Breadth should increase choice and selectivity.
Building after the crisis starts
Hiring teams and securing mandates during a dislocation is usually too slow. Capabilities must exist before opportunities become obvious.
Letting silos hoard information
Separate strategies provide little platform advantage when intelligence and relationships do not cross organizational boundaries.
Is it for you?
Best for
It is best for multi-strategy investors and financial platforms with enough scale to maintain specialist teams across markets and regions.
Not ideal for
It is not ideal for narrowly mandated funds that cannot move capital outside a predefined asset class or geography.
From the transcript
“by having a broad platform that could connect to the information flows coming in from the public market side, coming in from the private equity…”
“if you don't have a platform that allows you to pivot, you can't take advantage of that.”
“what we've done deliberately is have this cross platform approach both in products set expertise, but geographically so that we can swing to where those…”
From the episode
Mark Jenkins on Leveraged Finance and Pension Plans
Mark Jenkins