European Senior Secured Credit

The European Senior Secured Credit strategy seeks to invest primarily in sub-investment-grade corporate institutional loans and aims to produce positive returns through a flexible and unconstrained investment strategy seeking to outperform the Credit Suisse Institutional Western European Leveraged Loan B and Above Index

First to market:

  • Launched in August 2012, the Senior Secured Credit strategy was the first to be created in Europe dedicated solely to investments in Senior Secured loans and bonds

Excellent access to market:

  • Our first class reputation in the market with banks and private equity sponsors established over many years enables us to secure outstanding allocations in primary market deals

High conviction positions only:

  • Our nimble size is a distinct advantage: smaller than average primary market deals can represent full-sized positions, allowing us to build a portfolio with strong conviction positions only
  • Typically, our portfolio holds between 70 and 90 obligors

Exposure to the safest parts of issuers' capital structure:

  • By investing in senior secured debt, investors benefit from the same level of creditor protection as lending banks
  • Further protection is afforded to investors by the inclusion of a B- rating floor for the strategy

The combination of loans and bonds in one strategy allows the portfolio management team to:

  • Create alpha by expressing relative value views between the two asset classes
  • Source assets and remain invested with the same level of seniority and creditor protection at times when the loan market is supply constrained
  • Provide protection against rising rates by reducing duration as loans are floating rate assets

The team has been managing marked-to-market loan portfolios since 2004 with a focus on achieving strong and stable returns from the sub-investment-grade senior-secured loan market. The primary focus is on sponsor-driven leveraged buyout transactions with the ability to invest in other corporate loans.

Strategy details

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