TEXT - INVESTMENT MANAGERS - STRUCTURED FINANCE - LEVERAGED LOANS AND PRIVATE DEBT - What are Leveraged Loans and Private Debt instruments ...

What are Leveraged Loans and Private Debt instruments?

Leveraged Loans are mainly secured loans to mid-to-large sized companies usually used to support strategic acquisitions and Leveraged Buy-Out (LBO) transactions.

Private Debt instruments are a complementary way to access credit exposure to companies not systematically issuing debt on credit markets for various reasons (size, confidentiality of information / shareholders, speed of execution or private nature of the financing required).

Why consider Leveraged Loans and Private Debt instruments?

Leveraged Loans provide a way to get direct exposure to high yield private corporates while generally providing low interest rates sensitivity (floating interest rates) and protective features against downside (seniority, security and covenants under the loans documentation).

Private Debt instruments can provide diversification, duration with prepayment penalties and an enhanced risk / return profile versus public instruments.

Our approach to Leveraged Loans and Private Debt

The Leveraged Loans & Private Debt expertise is composed of a stable team of experienced portfolio managers and sectorial analysts with complementary backgrounds (Private Equity, rating agencies, banks, asset managers…) and with a local presence in both the European and US markets.

With a 15+ year track record, the Leveraged Loans & Private Debt team has carried out more than 1,000 leveraged loan investments* across the open-ended funds, mandates and Collateralised Loan Obligations (CLOs) it manages.

* Source : AXA Investment Managers as at 22/06/2017

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