Private debt
Leveraged finance
This strategy invests predominantly in senior secured loans issued by global sub-investment-grade companies from a variety of sectors, with a bias towards defensive industries.
The loans we invest in are typically issued to finance M&A activity by companies owned by private equity sponsors. We also lend to a number of publicly listed companies.
We are highly selective and seek to establish a lasting relationship through frequent engagement with the companies to whom we lend and with sponsor-owners.
Our conservative loan strategy aims to provide high running income from senior secured exposure to large, stable businesses, including those of truly global presence, along with diversification and liquidity benefits when considered as part of wider portfolio.
Floating-rate loans have seniority in the capital structure, with security over the assets or equity of the issuing companies. Leveraged loans can deliver attractive risk-adjusted returns owing to their high running coupon income and the benefit of security which mitigates the downside risk of sub-investment grade credit investments. The market is large and there is active secondary trading.
We were one of the first non-bank investors to enter the asset class, making our first investments in 1999. Today we are among the largest loan managers operating in the market, and our long-established team is supported by our extensive in-house research and restructuring capabilities.