Special Situations strategies aim to offer a high return without a corresponding increase in risk.
Our Special Situations strategy seeks to invest in undervalued, sub-investment grade credit opportunities, primarily in Europe where we believe a long, drawn out deleveraging cycle has only just begun. Whilst we like to focus across the capital structure, we have a special focus on opportunities in the loan space. Today, loans are likely to form the significant majority of the overall investment opportunity and Alcentra is a significant player in this asset class where we have a clear, competitive advantage. Everything we do is focussed on value. Importantly, we believe this provides our investors with the potential to achieve attractive returns relative to a given set of risks. This is critical from a capital preservation perspective.