Rahman Vahabzadeh Gets ‘In the Ring with Rob’ — 5 Key Takeaway’s from the Nicola Wealth Podcast
Audax Private Debt Managing Director and Co-Head of Origination Rahman Vahabzadeh recently sat down with Robert Olson and Matt Choi on Nicola Wealth’s In the Ring with Rob podcast. During the conversation, Rahman walks listeners through the evolution of private credit, what differentiates Audax in a crowded market, and, against the conventional wisdom, how the current macro backdrop is creating high-conviction opportunities.
Below is a recap of the discussion, distilled into five key insights.
Listen to the full episode here: The Role of Private Debt in Today’s Market with Rob Olsen, Matt Choi and Rahman Vahabzadeh
1. Staying True to the Core Middle Market
Audax continues to focus on borrowers generating $15 million–$75 million of EBITDA, a segment Rahman calls “the core middle market.” Despite asset growth, the firm has deliberately avoided moving up-market, preserving its volatility cushion, information advantage, and relationship depth.
Why it matters: Less competition from broadly syndicated loan desks means more consistent terms, better covenants, and tighter alignment with sponsor and investor needs.
2. Unitranche Growth—and Why It Works
The single-tranche, senior-secured unitranche structure has become a go-to financing tool post-GFC. Rahman traces its rise and explains how it simplifies documentation, speeds execution, and delivers visibility and confidence to transact to private-equity sponsors.
Quote: “Over the last 15 to 20 years, all parts of the market have grown, but unitranche has probably grown the most in terms of the financing solutions for private equity-backed transactions. It's probably the most dominant form of financing and almost now is synonymous with direct lending.”
3. Tenure as an Edge
With no investment team departures above VP in nearly 20 years, Audax’ investment team offers uncommon continuity. That stability means sponsors and LPs talk to the same faces cycle after cycle—an edge no term sheet can replicate. On top of that, the team has worked together through various cycles – the post dotcom bubble, the recession following the September 11th terrorist attacks, the GFC, and COVID. That provides us with the knowledge and toolset to drive through volatility.
Quote: “The tenure of our senior leadership here at Audax Private Debt… provides our clients, private equity sponsors, comfort in who they're going to be dealing with, and that person will be there during the life of that transaction.”
4. Defensive Portfolio Construction
Most of our middle-market loans still carry financial-maintenance covenants—an intentional contrast to the covenant-lite structures common in larger deals. Monthly reporting and ongoing dialogue with management give us early-warning signals and room to act before problems escalate.
Takeaway: Strong covenants and timely information are worth far more than chasing an extra 25 bps of yield.
5. Turning Volatility into Opportunity
From COVID dislocations to today’s tariff uncertainty, market uncertainty often widens spreads and lowers leverage. Audax’ committed capital, consistent underwriting, and speed allow the team to step in when banks step back.
Looking ahead: Rahman sees sustained appetite for private credit, fueled by PE dry powder, portfolio companies to be realized, and growing allocations from global institutions, wealth channels, and international investors alike.
