A two-part publication

Employee Ownership in Private Credit

Transform Finance and Ownership Capital Lab · October 2026

Transform Finance and Ownership Capital Lab are both working to help employee ownership financing reach greater scale. As the market grows, one obstacle has surfaced repeatedly in our conversations with asset allocators: Where does this fit in my portfolio? We heard the same challenge from EO fund managers and other field leaders, who see investors get stuck on this question before they can get to evaluating the fund itself.

The two pieces are designed to be used together, though each can stand alone.

Research Brief

Asset Allocation for Employee Ownership Funds: The Case for Private Credit for EO Mezzanine Debt Funds

Examines how market-rate EO mezzanine debt funds fit within private credit, based on transaction structure, return, risk, and liquidity.

Read the research brief

Communication Guide

Employee Ownership in Private Credit: A Communication Guide for Asset Allocators and EO Fund Managers

A guide for asset allocators and EO fund managers discussing employee ownership funds’ place within private credit.

Read the communication guide

Asset class classification may seem like a technical question, but it has practical consequences: it determines which investment team evaluates an opportunity, what benchmarks and diligence frameworks are applied, and ultimately whether an EO fund gets a serious look. These publications grew out of a shared conviction that the field needs a clearer answer.

Our research focuses specifically on market-rate EO funds providing subordinated mezzanine debt to ESOP (Employee Stock Ownership Plan) transactions. Our conclusion is straightforward: based on transaction structure and supported by the strategies’ return, risk, and liquidity characteristics, these funds are best understood and evaluated as private credit.

We hope these publications help move the conversation forward, and we welcome your questions, reactions, and perspectives as the field continues to evolve.

Want to dig deeper? Join us for a webinar conversation at 2pm Eastern on Nov 5, 2026. The briefing authors will be joined by Norbert Cichon, Director of Investments at Spring Point Partners, and Carolyn Ezelino, Managing Director and Head of Investments at Sonen Capital, to share how they evaluate EO funds and their advice for investors, fund managers, and the field.