Credit Experience. Market Coverage. Broad Products Suite.
We excel as active credit analysts, employing a value-centric methodology. Through meticulous bottom-up research, we pinpoint investment opportunities that present compelling relative value when weighed against their fundamental credit risk profiles.
At EGC Our portfolio managers boast an average of around 23 years of pertinent experience in navigating the dynamics of liquid credit markets, often tracing back to the inception of either the leveraged loan or high yield asset class. As dedicated long-term and patient direct lenders, we capitalize on our flexibility, extensive structuring expertise, and self-origination capabilities to strategically invest across diverse capital structures, addressing the comprehensive spectrum of our clients' financing requirements. Notably, members of our direct lending and alternative credit investment committees bring an average of approximately 23 years of valuable expertise in middle-market lending, leveraged finance, and asset-focused investing.
Equity Growth Capital’s reputation as a global leader in credit investing was built over decades. But its unifying investment philosophy has remained unchanged since day one.
Our direct lending platform provides tailored, flexible and proactive capital solutions for clients across various business sectors.
Our credit strategies encompass a dynamic portfolio that spans both liquid and illiquid instruments, acquired directly from borrowers, private and public corporate credit and asset-backed finance markets. Our primary focus lies on rated and non-rated debt issued by sub-investment grade entities across developed and emerging markets. We strategically invest in a diverse range of financial instruments, including high yield bonds, convertible securities, leveraged loans, structured credit instruments, distressed debt, and private debt.
One of the world’s largest alternative credit investors
Our seamlessly integrated global platform, coupled with a robust origination infrastructure, empowers us to effectively oversee a robust credit asset portfolio.
Financing stronger businesses
Our adaptive and inventive financial solutions contribute to the robust financing of resilient businesses across diverse market conditions.
Investment and retirement solutions
We strive to deliver superior credit performance and enhanced risk-adjusted returns, aligning with our clients' investment and retirement income goals.
Our Strategies
Syndicated Loans
Our approach entails curating a diversified portfolio comprising liquid, traded non-investment grade secured loans tailored for corporate issuers. As a compelling option in the realm of floating-rate fixed income alternatives, these loans are particularly well-suited for investors aiming to effectively manage duration. Our funds encompass issuers from both North America, Europe and Asia.
High Yield Bonds
Our approach aims to provide a diversified portfolio of liquid, traded non-investment grade corporate bonds, encompassing secured, unsecured, and subordinated debt instruments from issuers in both North America and Europe.
Multi-Asset Credit
Our Multi-Asset Credit strategies seamlessly integrate syndicated loans, high yield bonds, and diverse asset categories such as structured credit, special situations, and related credit instruments into a cohesive portfolio. Engineered for flexibility, these portfolios provide investors with a dynamic solution for global credit investing, enabling EGC to strategically allocate across multiple asset classes in diverse market conditions to seize optimal relative value. This globally oriented and highly customizable strategy is crafted to navigate the liquid non-investment grade credit universe effectively, designed to adapt and thrive in various market environments.
Alternative Credit
EGC's Alternative Credit is the strategic focal point for investment opportunities beyond the confines of traditional, well-established markets like corporate debt, real estate, and private equity. Recognizing the existence and persistence of gaps between these conventional markets, EGC attributes these gaps to various factors, including regulation, bank disintermediation, tax and accounting rules, rating agency criteria, market structure, capital inefficiencies, and transaction complexity and size. Within these gaps lie markets and sectors that are frequently overlooked or misunderstood, presenting investment opportunities characterized by attractive yield premiums, current income, downside protection, and a low correlation to traditional markets.
EGC’s Alternative Credit encompasses a diverse array of substrategies meticulously crafted to be client-centric and solutions-oriented, presented in three primary formats: pure play, customized, and flagship funds. Within each format, EGC’s prioritizes asset security, covenants, cash flow velocity, and other strategic features aimed at capturing value and mitigating risks to principal. Alternative Credit strategically pursues a blend of downside protection, low correlation to traditional markets, diversification, appealing levels of current income, and opportunities for attractive risk-adjusted returns.
Direct Lending
In response to the consolidation within the banking industry over the past decades and the institutionalization of the leveraged lending market, EGC has strategically seized the opportunity to deliver financing solutions to middle-market companies. With a robust team comprising approximately 180 investment professionals situated across offices in the U.S. and Europe, we independently originate investment opportunities, specializing in senior secured loans, private high yield, mezzanine, and select minority equity investments. Our capabilities extend to crafting creative structures, holding substantial and controlling positions, and providing sponsors and management teams with heightened certainty of execution. This, we believe, affords us a competitive edge in the market.
Private Credit
Our private credit strategies center on identifying investment prospects within the realm of private debt issued by companies facing limited or no access to traditional financing channels. These strategies aim to deliver compelling, risk-adjusted absolute returns by originating or participating in the syndication of performing debt from North American and European companies. Leveraging EGC's robust global sourcing capabilities across credit and private equity domains, our investment teams employ a fundamental, value-driven, opportunistic approach. This approach is strengthened by cultivating robust relationships with private equity sponsors, senior advisors, and potential borrowers worldwide.
In 2022, we secured a controlling stake in our credit facility, a key provider of growth capital and liquidity to top-tier firms. This strategic move has garnered significant interest from institutional investors, enabling the funding of value creation and portfolio management initiatives through preferred equity and NAV loans."
Emerging Markets Debt
Our intricate, dynamic, and inefficient emerging markets credit landscape offers a distinctive prospect for adept investors to pinpoint attractively priced opportunities in both creditworthy and distressed debt instruments. With a history of investing in these markets since their nascent stages, our team members apply a meticulous bottom-up, fundamental approach to credit analysis. They harness the extensive credit platform of Equity Growth Capital and tap into an external network of institutional Investors to pursue returns that are compelling relative to the associated risk.
Investment Grade Solutions
Investment Grade Solutions strives to achieve superior risk-adjusted returns throughout the fixed income spectrum, with a strong emphasis on quality, safety, and liquidity. Leveraging the team's access to EGC's comprehensive credit platform, various avenues for value extraction are explored, encompassing meticulous bottom-up research, strategic sector rotation, and a thorough analysis of global yield curves and cycles.
Aligned with EGC's investment philosophy, Investment Grade Solutions places a paramount focus on risk control while actively pursuing income generation. The team crafts customized investment solutions, collaboratively engaging with clients to comprehend and align with their specific objectives and parameters. This includes a nuanced understanding of risk tolerance, adherence to regulatory constraints, and alignment with ESG objectives.
Structured Credit
Drawing upon extensive experience in senior loan and real estate debt investing, Equity Growth Capital’s Structured Credit strategy aims to surpass traditional debt alternatives, providing enhanced liquidity compared to private credit offerings. Employing a meticulous bottom-up approach, the strategy constructs diversified portfolios and assesses opportunities across the structured credit universe through a relative value lens. This encompasses instruments such as collateralized loan obligations (CLOs), commercial mortgage-backed securities (CMBS), and other asset-backed securities. Securitizations, known for their complexity premium, typically exhibit robust structural protections and investor-friendly features, including covenants, asset-class and sub-sector diversity, and excess collateral coverage.
Convertible Securities
The nuanced characteristics of convertible securities, blending attributes of both equity and debt, often lead conventional stock and bond investors to overlook these instruments, resulting in an inefficient market. This inefficiency creates pricing opportunities for convertible securities, where returns can be achieved without commensurate risk. Our approach centers on pinpointing securities with the highest potential for value — those poised to capture a significant percentage of the appreciation of the underlying stocks while mitigating exposure to potential risks and declines.
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