Park Square Perspectives: Investing without alignment is a losing game

Alignment is often assumed, yet too rarely tested. But it’s fundamental to success for investors.

In the simplest terms, you should never invest in a setup where the manager wins while you lose. Instead, their success must depend on yours. This is especially true in private credit where LPs, lenders, sponsors and the companies being backed all must row together.

At Park Square, alignment has always been foundational. From the beginning, our institutional backers insisted on it. They wanted to know: were we investing our own capital alongside theirs? Were we compensated in a way that depended on performance? The answer always was yes.

That philosophy still defines us today. It’s a principle which we believe differentiates us from much of the broader private credit landscape. And across market conditions, it gives us the discipline to act decisively when conditions are right – or to step back when they are not.