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Strategy Overview

The Alcentra European Liquid Credit strategy aims to generate attractive, risk adjusted returns comprising both income and capital by investing in a diversified pool of predominately European senior secured loans and senior secured bonds of non-investment grade issuers. Secured Loans offer a floating rate of income, with a fixed margin above underlying reference rates, giving protection in a rising interest rate environment and less duration risk than fixed rate assets.

Key Characteristics

Attractive risk-return profile

Strong risk-adjusted return opportunities with active management allowing a quick response to higher yielding opportunities as they present themselves. 

Large and experienced team

One of the largest global and experienced research platforms with long tenure and track record.

Highly synergistic platform

Our prominent scale and extensive network allow unique sourcing and exceptional information edge.

Investment Philosophy and Process

Strives to generate sustainable and robust returns for investors by providing companies with the credit solutions they need to thrive and prosper. 

Alcentra deploys a rigorous investment process with disciplined credit selection and an overarching focus on active portfolio management:

  • Dynamic approach that aims for the highest risk-adjusted return potential is always reflected in the portfolio.
  • One of the biggest and most experienced research teams generating high-quality credit underwriting.
  • Highly complementary platform with industry-leading expertise in structured credit, direct lending and special situations to synergistically source, vet as well as execute investments.

Sustainability Commitment

Alcentra believes that responsibly managed companies are better placed to achieve a sustainable competitive advantage and provide strong long-term growth. As a result, our commitment to implement the six Principles for Responsible Investment and the analysis of E, S and G factors form a part of our standard investment process, which can be further reviewed in our Responsible Investment Policy.

Alcentra’s timeline to responsible investing
 

Meet the Team

The Alcentra European Liquid Credit Strategy is led by Daire Wheeler, Ross Curran and Graham Rainbow who are supported by a robust infrastructure of more than 170 investment professionals globally*.

Thomas Gahan is Chairman and Chief Investment Officer of Benefit Street Partners and is head of alternatives for Franklin Templeton.
 

Learn more about Alcentra

Thomas Gahan

Chairman, Chief Investment Officer - Benefit Street Partners
Head of Alternatives - Franklin Templeton
Industry since: 1984

Daire Wheeler

Managing Director, Head of Liquid Portfolio Management 
Industry since: 2004

Ross Curran

Managing Director,
New York, United States
Industry since: 2006

Graham Rainbow

Managing Director, Senior Portfolio Advisor
Industry since: 1993

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Important Information
This material is intended to be of general interest only and should not be construed as individual investment advice or a recommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy. It does not constitute legal or tax advice. The views expressed are those of the investment manager and the comments, opinions and analyses may change without notice. The information provided in this material is not intended as a complete analysis of every material fact regarding any country, region or market.

What are the risks?
All investments involve risk, including possible loss of principal. There is no guarantee that a strategy will meet its objective.

Liquid credit (bond) prices generally move in the opposite direction of interest rates. As the prices of bonds in a portfolio adjust to a rise in interest rates, the portfolio's overall value may decline. Changes in the financial strength of a bond issuer or in a bond's credit rating may affect its value. High yield bonds are subject to greater price volatility, illiquidity, and possibility of default.

Direct Lending and investments in other debt instruments entail normal credit risks (i.e., the risk of non-payment of interest and principal) and market risks (i.e., the risk that certain market factors will cause the value of the instrument to decline). When originating a loan, a lender expects to rely significantly upon representations made by the borrower. There can be no assurance that such representations are accurate or complete, and any misrepresentation or omission may adversely affect the valuation of the collateral underlying the loan, or may adversely affect the ability of the lender to perfect or foreclose on a lien on the collateral securing the loan, or may result in liability of the lender to a subsequent purchaser of the loan. Finally, under certain circumstances, payments to the lender may be reclaimed if any such payment or distribution is later determined to have been a fraudulent conveyance or a preferential payment.

Liquidity risk exists when securities or other investments become more difficult to sell, or are unable to be sold, at the price at which they have been valued. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. Derivative instruments can be illiquid, may disproportionately increase losses, and have a potentially large impact on performance.