Broadly Syndicated Loans
Seeks to offer a balance of current income and downside protection by investing in non-investment grade, publicly-rated bank loans.
Investment advisory services are provided by First Eagle Private Credit Advisors, LLC (“First Eagle Private Credit Advisors”) for broadly syndicated loans. First Eagle Private Credit Advisors is registered with the SEC as an investment adviser under an umbrella registration filed by First Eagle Private Credit, LLC (“First Eagle Private Credit”). First Eagle Private Credit Advisors and First Eagle Private Credit are wholly owned subsidiary of First Eagle Investment Management, LLC a SEC registered investment adviser (“FEIM”). First Eagle Investment Management, Ltd (“First Eagle”), a wholly owned subsidiary of FEIM, is authorised and regulated by the Financial Conduct Authority of the United Kingdom. FEIM and First Eagle assists First Eagle Private Credit Advisors in marketing the advisory services that it offers. To the extent you retain First Eagle Private Credit Advisors to manage a separate account on your behalf, please note that FEIM or First Eagle has or may assist in establishing your client relationship with First Eagle Private Credit Advisors.
The team seeks to generate attractive risk-adjusted returns and preserve purchasing power through fundamental credit analysis, value-oriented asset selection, thoughtful portfolio construction and active portfolio management.
Fundamental credit analysis
The team employs a disciplined investment process that leads to value-oriented asset selection based on bottom-up credit analysis and collaborative input from its team of credit research analysts. The team’s investment philosophy encourages and relies on the active internal exchange of ideas and information to identify actionable investment opportunities and manage portfolio risk. Rigorous, bottom-up fundamental analysis combines proprietary credit analysis with critical assessments of loan structure and contractual protections. In evaluating potential investments, the team assesses a range of investment considerations including, fundamental business risks, industry dynamics, competitive environments, relative value, trading liquidity, capital structure, contractual lender protections, and projected debt repayment capacity under various scenarios, among other factors, to determine investment merit.
The team monitors investment trading levels and technical market dynamics daily and tracks company performance against internal and management/analyst earnings forecasts at least quarterly. Monitoring activities drive significant information flow among the team’s credit research analysts, which informs portfolio strategy and risk management decisions. It also often leads to idea generation and valued input into trading strategies and the identification of other investment opportunities.
The team seeks to employ a dynamic trading strategy in an effort to manage downside risk and potentially optimize long term portfolio performance. We believe our extensive, ongoing research efforts and secondary trading relationships provide a competitive advantage that allows the team to potentially identify valuable credit investment opportunities during periods of increased volatility or market disruption.
- Disciplined and consistent investment approach
- Differentiated performance since 2006
- Continuity of core investment team
Important Risk Information
Alternative investments can be speculative and are not suitable for all investors. Investing in alternative investments is only intended for experienced and sophisticated investors who are willing and able to bear the high economic risks associated with such an investment. Investors should carefully review and consider potential risks before investing. Certain of these risks include:
- Loss of all or a substantial portion of the investment;
- Lack of liquidity in that there may be no secondary market for interest in the strategy and none is expected to develop;
- Volatility of returns;
- Interest rate risk;
- Restrictions on transferring interests in a private investment strategy;
- Potential lack of diversification and resulting higher risk due to concentration within one of more sectors, industries, countries or regions;
- Absence of information regarding valuations and pricing;
- Complex tax structures and delays in tax reporting and
- Less regulation and higher fees than mutual funds.
- Use of leverage which magnifies the potential for gain or loss on amounts invested and is generally considered a speculative investment technique and increases the risks associated with investing in the strategy.
- Carried interest which may cause the strategy to make more speculative, higher risk investments that would be the case in absence of such arrangements.
- Below investment-grade loans which may default and adversely affect returns
Any herein information does not constitute an offer or commitment of any kind.
For more information about the Broadly Syndicated Loans Strategy, please contact your relationship manager or Doug Meyer at 212.698.3013.
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