Fixed income solutions
ICG invests in leveraged loans and high yield bonds across a number of strategies. We take a fundamental, bottom up approach to our investment analysis to identify opportunities that we believe are undervalued by the wider market.
Corporate Loans and bonds
ICG originates and structures loan and bond strategies across a range of investment vehicles, segregated loan strategies a well as multi-asset credit funds.
Multi-asset credit strategies
ICG offers multi-asset credit strategies that invest flexibly across the sub-investment grade credit universe, selecting our best ideas and combining the strengths of each asset class to create a fund that seeks to be defensive and high yielding. The strategy’s core investment universe is European loans and European high yield bonds, with additional opportunistic exposure to CLO debt and special situation credits. Typically returns exhibit low volatility, as the assets invest in are defensive, offering senior security and covenants in many cases.
CLOS, ABS and Securitised debt
ICG both originates and structures our own Collateralised Loan Obligations (CLO)s in Europe and in the US, and through other vehicles invests in the CLOs, Asset Backed Securities (ABS) and other forms of securitised debt of other issuers via secondary markets.
ICG’s direct lending strategies invest in senior secured subordinated debt investments with a ‘sleep at night’ risk profile. We invest in companies based on our direct sourcing model where we originate, structure and execute our own investments. Our direct lending strategies offer investors an attractive risk: reward profile with a stable cash yield.
Alternative Credit strategies can offer investment opportunities in non-core assets, structured in portfolio format, such as CLOs, RMBS, CMBS and correlation tranches. ICG’s Alternative Credit investment team focus on three core opportunities: (a) structured credit; (b) filling the credit void left by exiting banks, and (c) credit portfolios sourced from banks balance sheets. This strategy targets these three core areas by investing into portfolios of credit for which there are no reliable third party pricing or research tools (i.e. the approach relies heavily on manager expertise and bespoke research). The strategy centres around analysis of these non-standardised opportunities, including detailed analysis of the underlying credits. It seeks to capture alpha by identifying price inefficiencies in the structured credit markets, providing solutions to financial institutions and opportunistic trading. Many of the opportunities the strategy targets benefit directly from the core macro themes of banking transformation and government / central bank policies.
Real estate whole loans and mezzanine
ICG-Longbow real estate teams predominantly invest in self-originated whole loans secured against commercial property in the UK and selectively across Europe. This strategy also provides development funding and subordinated capital, including mezzanine debt and preferred equity. With a focus on investments with income and/or value growth business plans, portfolios seek to generate attractive total returns, underpinned by a stable risk profile dominated by whole loans. Our real estate whole loans and mezzanine strategies seek to offer investors strong capital protection coupled with predictable returns.
Real estate senior debt
Our UK real estate senior debt programme has been developed to offer investors exposure to a defensive commercial real estate senior debt portfolio, seeking to provide:
- strong protection against capital loss;
- secure fixed rate income returns; and
- a stable or improving risk profile