Canadian Private Lenders’ Podcast

Ep.134 | How Private Lenders Should Handle Excess Capital

Neal Andreino and Ryan MacNeil

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0:00 | 34:47

What happens when investor capital is flowing in, but strong deals aren't? In this episode, Neal and Ryan tackle one of the most underrated problems in private lending: having too much dry powder. They break down the dangers of forcing bad deals, the smartest ways to deploy (or hold) idle capital, and the levers you can pull on both the capital and deal-flow side of the business. Whether you're running a fund or operating as an individual lender, this one is packed with practical, hard-won insight.

Show Notes:

03:20 Setting the stage: when capital inflows outpace deal flow

08:00 How excess capital leads to blown portfolios, the slow erosion of underwriting standards

12:17 Option 1: Pay down leverage first (lines of credit, co-lenders)

16:02 Option 2: Early investor redemptions, start with those already hinting at an exit

21:22 Option 3: If you must redeem, prioritize newer investors over long-term sticky capital

21:59 Option 4: Sit on the cash, painful, but better than losing it

23:08 Generating more deal flow: broker relationships, targeted outreach, and niche clarity

27:02 Liquidity forecasting: why most capital problems are really forecasting problems

32:19 Key takeaways and close

Resources:
Keystone Capital Group
CPLP Instagram: @cplpodcast
Keystone Instagram: @keycapgroup

Find Neal On:
Instagram: @neal.andreino
LinkedIn: Neal Andreino

Find Ryan on:
LinkedIn: Ryan MacNeil
E-mail: ryan@keycap.ca