Opportunistic Credit
& Distressed Debt
We are pioneers
who focused on opportunistic credit and distressed debt investing since it first emerged as an institutional asset class in the early 1990s. Collectively, our Portfolio Managers have a successful record and history in distressed investing, focusing on the senior part of the capital structure while opportunistically investing in other parts. As a result, our team is well suited for executing Monarch’s investment strategy globally – wherever the right opportunity is found.
Our investment objective is to seek attractive
risk-adjusted rates of return.
We seek to identify inefficient segments of the credit markets that provide for differentiated distressed investments. We look to leverage our core skills and experience in the credit markets to create value for our clients.
We focus on five key market segments within the opportunistic credit and distressed landscape
Distress for Control
Process Driven & Other Value-Add
Preference for and expertise in small to mid-sized capital structures with restructuring needs
Off-the-run opportunities in large capital structures
Invest across various industries
RMBS, CMBS, CLOs, EETCs, and other securitized assets
Real estate credit:
- Secondary debt
- Direct lending and other solution-based capital
Property ownership:
- Leverage operating partners
- Redevelopment of distressed corporate assets
Municipal and infrastructure debt
Sovereign debt
Non-real estate hard assets or loans backed by hard assets
Purchase of assets/companies from bankruptcy estates
Life settlements
Post-restructuring equity
Other special situations
Corporate
Distress for Control
Process Driven & Other Value-Add
Preference for and expertise in small to mid-sized capital structures with restructuring needs
Off-the-run opportunities in large capital structures
Invest across various industries
Structured
Credit
RMBS, CMBS, CLOs, EETCs, and other securitized assets
Real Estate
Real estate credit:
- Secondary debt
- Direct lending and other solution-based capital
Property ownership:
- Leverage operating partners
- Redevelopment of distressed corporate assets
Government Debt
Municipal and infrastructure debt
Sovereign debt
Special
Situations
Non-real estate hard assets or loans backed by hard assets
Purchase of assets/companies from bankruptcy estates
Life settlements
Post-restructuring equity
Other special situations
As disciplined investors, Monarch relies on our consistent and repeatable process
1
Downside Protection
2
Event-Driven
3
Active in the Process
Monarch places the utmost importance on capital preservation. We focus on opportunities that are senior in the capital structure. This “top of the capital” structure perspective aims to protect the downside and mitigate risk.
By acting on events as catalysts, we seek to reduce market correlation. In our experience, event-driven investments offer greater exposure to process risk while minimizing valuation risk, thereby reducing correlation to broader markets and limiting investment downside.
Our investment team seeks to drive outcomes by actively engaging in debt restructurings or other legal processes, including through steering committees, ad hoc groups, or other leadership roles. Our active approach distinguishes our investment strategy and drives value creation by capitalizing on Monarch’s restructuring and legal expertise.
1
Downside Protection
Monarch places the utmost importance on capital preservation. We focus on opportunities that are senior in the capital structure. This “top of the capital” structure perspective aims to protect the downside and mitigate risk.
2
Event-Driven
By acting on events as catalysts, we seek to reduce market correlation. In our experience, event-driven investments offer greater exposure to process risk while minimizing valuation risk, thereby reducing correlation to broader markets and limiting investment downside.
3
Active in the Process
Our investment team seeks to drive outcomes by actively engaging in debt restructurings or other legal processes, including through steering committees, ad hoc groups, or other leadership roles. Our active approach distinguishes our investment strategy and drives value creation by capitalizing on Monarch’s restructuring and legal expertise.