First Eagle Investments -

Direct Lending: Underwriting Amid Tariff Uncertainty

Direct Lending Underwriting Amid Tariff Uncertainty

Uncertainty around tariffs has caused volatility across financial markets, but there’s no “one-size-fits-all” answer to how the tariffs will impact different market segments and sectors. FEAC’s Chief Investment Officer of Direct Lending Michelle Handy explains why the lower middle market tends to be more insulated from the direct impact of tariffs, why deal flow volumes in this space may likely remain intact, and how the team’s all-weather approach to lending to non-cyclical businesses with high free cash flow and lower capex may provide resilience in a recessionary environment.

 

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About First Eagle Investments


First Eagle Investments is an independent, privately owned investment management firm headquartered in New York with approximately $152 billion in assets under management as of March 31, 2025.* Dedicated to providing prudent stewardship of client assets, the firm focuses on active, fundamental, and benchmark-agnostic investing, with a strong emphasis on downside mitigation. With over 15 years of experience managing assets on behalf of insurers, First Eagle is focused on meeting their unique portfolio and servicing needs through bespoke investment solutions and a dedicated insurance coverage team. The firm’s investment capabilities for the insurance market include alternative credit, fixed income, and global equities.

All figures related to assets under management (AUM) and investments are preliminary figures based on management’s estimates and as such are subject to change. Figures provided have been rounded for presentation purposes and in certain instances rounding anomalies may arise.

* The total AUM represents the combined AUM of (i) First Eagle Investment Management, LLC, (ii) its subsidiary investment advisers, First Eagle Separate Account Management, LLC, First Eagle Alternative Credit  (“FEAC”) and Napier Park Global Capital (“Napier Park”), and (iii) Regatta Loan Management LLC, an advisory affiliate of Napier Park as of March 31, 2025. It includes $0.6 billion of committed and other non-fee-paying capital from First Eagle Alternative Credit, LLC and $3.1 billion of committed and other non-fee-paying capital from Napier Park Global Capital, inclusive of assets managed by Regatta Loan Management LLC.

Katie Cowan   
Head of Insurance Client Solutions
katie.cowan@firsteagle.com
(310) 893-2440

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