Event Driven Credit

More liquid in nature we focus on stressed credits, principally in the High Yield market.


We seek situations where stress occurs due to over geared balance sheets, economic cycle, industry turmoil, policy changes, structural complexity.

In some circumstances the companies are performing perfectly well but being tarnished by external events e.g. from the Russian default (1998) through to the Telecoms boom/bust (2002); Ford/GM crisis (2005): Parmalat/Italian crisis (2004); Financial Tsunami (2008/9); Greek Government debt crisis (2010) to ongoing UK retail crisis etc. Our exit will occur when the external influences are stabilised/reversed.

In such  situations where the companies are exhibiting lower than expected trading results and the market has mispriced default risk we target those situations where we assess that the capital structure will ‘creak but not break’. Our exit will be achieved by fundamental credit improvement and/or credit event.

We seek to invest  in companies principally private equity backed where management and sponsors interests are aligned for an exit by way of a credit event

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