One of the longest-tenured and largest participants in the sub-investment grade market with extensive experience across all key European jurisdictions.
Strategy Overview
The 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.
Alcentra has been an active investor in opportunistic credit since 2007, investing across a broad range of European sub-investment grade opportunities. The strategy currently manages approximately $1.5 billion across a variety of funds.
Key Characteristics
High calibre sourcing capabilities
Alcentra’s extensive knowledge of the issuer universe and sponsor relationships result in proprietary sourcing for the strategy.
Downside risk management focus
Focused on managing downside risk through strong asset coverage or solid cash flow generation. We primarily invest in senior secured debt in jurisdictions with strong creditor rights and seek to deliver attractive risk adjusted returns via a combination of capital appreciation and current income.
Industry expertise
Strong knowledge of the legal frameworks that affect corporates and their stakeholders as they go through - or risk going through - restructuring processes.
Philosophy and Investment Process
Generate sustainable and robust returns for investors by providing companies with the credit solutions they need to thrive and prosper.
Alcentra deploy a fundamental value-based approach and seek to invest in assets that are mispriced as a result of financial stress. These include cases of temporary market dislocation, situations where sound businesses require balance sheet restructuring, or the ability to provide capital where traditional sources of financing are no longer available.
Scaled and integrated platform
Strong restructuring expertise
Complete skillset required to drive restructuring processes and manage the most complex situations, while nimble enough to take advantage of the full range of opportunities.
Demonstrated track record
Established business model and long-term track record of successfully sourcing opportunities across a wide variety of jurisdictions and industries.
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 Special Situations Strategy is led by Eric Larsson and Laurence Raven each co-managing the European Special Situations investment team supported by a dedicated team of approximately seven investment professionals. The team also has access to a deep bench of corporate credit investment professionals and sector-focused research analysts with all senior team members employing a hands-on diligence approach and involvement in all aspects of the investment process.
Thomas Gahan is Chairman and Chief Investment Officer of Benefit Street Partners and is head of alternatives for Franklin Templeton.
Thomas Gahan
Chairman, Chief Investment Officer - Benefit Street Partners
Head of Alternatives - Franklin Templeton
Industry since: 1984
Eric Larsson
Managing Director, Head of Special Situations
Industry since: 2002
Laurence Raven
Managing Director, Head of Special Situations
Industry since: 2006
