Secured Loans

Superior, risk adjusted returns while focussing on capital preservation.

Secured Loans are sub-investment grade corporate debt instruments that are secured against the assets of the borrower. Because of this, Secured Loans are expected to offer a higher recovery rate in the event of default than unsecured obligations like High Yield Bonds. Loan investors often receive the benefit of extensive legal covenants that provide control over borrowers in the event of weaker performance.

Secured Loans offer a floating rate of income, with a fixed margin above interbank offered rates, offering an investor protection in a rising interest rate environment and less duration risk than fixed rate assets. Due to their position in the capital structure Secured Loans display lower secondary market price volatility than High Yield Bonds.

Alcentra is one of the leading participants in this market, and is frequently approached by private equity firms, arranging banks, and borrowers as a cornerstone investor in high profile corporate financings.

For further information on the strategy please contact us or for more background information on the Management Team please press here.

Awards

  • EuroHedge Awards 2017 Winner
  • Barron’s
  • HFMWeek 2017 - European Performance Awards
  • Global Capital Awards 2016 - Best Institutional Investor in Senior Loans
  • ALT Credit Intelligence 2016 - European Performance Award
  • BarclayHedge 2015 - Ranked #1 in the Distressed Securities Category
  • CreditFlux 2015 - Manager Awards 2015
  • Private Debt Investor Awards 2014 - Deal of the Year
  • Private Debt Investor Awards 2014 - Direct Lender of the Year
BNY Mellon