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At-a-glance
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Overview
The strategy seeks to deliver compelling risk-adjusted returns by originating and underwriting a diversified portfolio of bespoke senior and subordinated European loans to mid-to upper-mid-sized companies in non-cyclical and defensive sectors.
Strategy highlights
- Targets stable businesses by supporting M&A, LBO, and refinancing activity in the upper-mid market and concentrating on an EBITDA profile of €20 million - €200 million.
- Emphasizes defensive, non-cyclical sectors and growing businesses with strong cash flows.
- Focuses on European deals with a bias to Northern Europe and origination benefitting from local networks.
We believe that investing in private credit with those leading managers that can demonstrate cycle-tested processes and returns, with a track record of returning capital to investors, remains an attractive and stable investment as the macro environment continues to evolve.
INCREASED DEAL VOLUMES
Reduced bank lending and liquid markets issuance
TYPICALLY LOWER LEVERAGE
More conservative capital structures due to higher interest costs
HIGH QUALITY BORROWERS
Highly selective targeting large, stable, non-cyclical businesses
In this paper, we examine secondaries’ performance over multiple market cycles, their persistent structural advantages, three common misconceptions, and why current market conditions present a particularly compelling entry point.
Both GPs and LPs are turning towards NAV financing as the market demands more flexible solutions and offers diversification for investors, says Arcmont’s head of NAV Financing, Peter Hutton
In this expert Q&A Jill White and Derek Fricke from Churchill Asset Management answer how both senior lending and junior capital dealflow are poised for a significant resurgence as uncertainty eases and M&A activity returns.
Investors should be aware that alternative investments including private equity and private debt are speculative, subject to substantial risks including the risks associated with limited liquidity, the potential use of leverage, potential short sales and concentrated investments and may involve complex tax structures and investment strategies. Alternative investments may be illiquid, there may be no liquid secondary market or ready purchasers for such securities, they may not be required to provide periodic pricing or valuation information to investors, there may be delays in distributing tax information to investors, they are not subject to the same regulatory requirements as other types of pooled investment vehicles, and they may be subject to high fees and expenses, which will reduce profits.
