In our latest episode, Sid Ahl and Erika Pagel are joined by Jon Lewinsohn, founder and managing partner at Diameter Capital Partners, a leading credit investment firm with expertise across public, private, and structured credit markets. Brown Advisory has been invested with Diameter since its launch in 2017.
Jon joins the podcast at a time of rapid transformation in credit markets. From AI-driven disruption to policy volatility, he shares how his philosophy and platform are built to respond quickly and thoughtfully to change.
Highlights:
- Jon outlines a flexible investment philosophy focused on identifying opportunities across the credit spectrum—from performing to stressed and distressed—by approaching each situation with multiple angles for success. He emphasizes the importance of being “safely fast,” combining speed with discipline to generate alpha.
- Diameter’s research structure is designed for agility. Analysts develop both macro and micro views across industries, allowing the firm to respond quickly to new opportunities while avoiding consensus thinking.
- The firm has evolved from a single-strategy hedge fund into a diversified platform that includes Collateralized Loan Obligations, direct lending and dislocation funds. Despite this growth, Diameter remains nimble, maintaining size constraints to preserve performance and flexibility.
- Macro topics such as inflation, Fed policy and tariffs are discussed, with Jon stressing the importance of forming independent views and not outsourcing macro thinking.
- Jon highlights microcycles—industry-specific dislocations—as a key area of focus. He discusses opportunities in Telecom and Housing, where high debt levels and structural shifts are creating differentiated credit situations.
- AI is a recurring theme throughout the episode. Jon shares how Diameter integrates AI into its research and operations, and how the technology is reshaping capital flows and industry dynamics. He also discusses the firm’s cautious approach to AI-related credit investments, particularly around data center financing.
Sid and Erika closed the episode with reflections on Jon’s high-energy approach, the depth of Diameter’s team and the firm’s ability to combine macro insight with bottom-up credit work. They emphasized the importance of disciplined risk management, thoughtful portfolio construction and identifying industry transitions to generate alpha in today’s evolving credit landscape.
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The views and opinions expressed in this podcast are those of the speakers and do not necessarily reflect those of Brown Advisory or Diameter Capital Partners. These views are not intended to be and should not be relied upon as investment advice and are not intended to be a forecast of future events or a guarantee of future results. The information provided in this podcast is not intended to be and should not be considered to be a recommendation or suggestion to engage in or refrain from a particular course of action or to make or hold a particular investment or pursue a particular investment strategy, including whether or not to buy, sell or hold any securities mentioned. It should not be assumed that investments in such securities have been or will be profitable. To the extent specific securities are mentioned, they have been selected by the speakers on an objective basis to illustrate views expressed in the commentary and do not represent all the securities purchased, sold or recommended for advisory clients. The information contained herein has been prepared from sources believed reliable but is not guaranteed by us as to its timeliness or accuracy and is not a complete summary or statement of all available data. This piece is intended solely for our clients and prospective clients, is for informational purposes only and is not individually tailored for or directed to any particular client or prospective client.
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Private Credit investments are characterized by a high degree of risk, volatility and illiquidity due, among other things, to the nature of the investments. A prospective investor should thoroughly review the Offering Materials pertaining to any investment and carefully consider whether such an investment is suitable to the investor’s financial situation and goals. Investors should have the financial ability and willingness to accept the risks and lack of liquidity that are characteristic of these types of investments. There can be no assurance that any investment objectives will be achieved, or that investors will receive a return of their capital. Accordingly, investors should only invest in private credit investments if such investors are able to withstand a total loss of their investment.
Terms and Definitions:
Alpha refers to the excess return of an investment relative to the return of a benchmark index or market.
CapEx refers to funds used by a company to acquire, upgrade, or maintain physical assets such as property, buildings, or equipment. These are long-term investments aimed at expanding or improving operations.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) refers to a financial metric used to evaluate a company’s operating performance. It strips out the effects of financing and accounting decisions by adding back interest, taxes, depreciation, and amortization to net income.
Forward Earnings Per Share (EPS) is an estimate of a company’s earnings per share for a future period.
Microcycles refers to Industry-specific downturns or disruptions that are cyclical in nature, distinct from broader economic recessions.