Special Situations strategies aim to offer a high return without a corresponding increase in risk.
Our Special Situations strategy aims to generate attractive risk-adjusted returns by investing in stressed, distressed and new money financing opportunities, primarily in Northern and Western Europe.
We employ a multi-strategy approach, capitalising on cases where there is temporary credit market dislocation, where good companies are in need of balance sheet restructuring or where traditional sources of financing are no longer available to those same companies. We seek to deliver attractive absolute and risk-adjusted returns via a combination of capital appreciation and current income by investing predominantly in senior secured corporate debt.
The strategy overlays the product expertise of a dedicated, specialist investment team with Alcentra’s extensive knowledge of the issuer universe and sponsor relationships in global credit markets.
New issue leverage, contractual terms and yields all indicate a credit market that has reached its cyclical peak. Going forward we expect to see persistently high market volatility and an expansion of the opportunity set driven by elevated geopolitical risks, a slowdown of macro-economic performance and challenges to individual business models and sectors.