Par4Investment is a credit manager focused on the distressed leveraged loan market.
I interview founder Robert Burke to find out more about the strategy and their:
1.Focus on liquid term loans $250MM-$1.25Bn in size, avoiding excessive competition of large managers;
2.Their CLO Platform that has allowed them to vet all-new issue loans as they came to market giving a timing and informational edge when a credit is downgraded or defaults;
3.Why the Fulcrum security this time is most often the 1st lien debt and the advantages thereof:
- Asymmetric risk-reward ….more upside, less downside;
- The ability to get a plan out of bankruptcy sooner with no objecting class;
- Typically, some current return in the form of “adequate protection payments”
4.And the Ideal “exit strategy” as built-in PE sponsored credits are at historic high leverage