Presentation to Vermont Pension Investment Committee
Alt Credit Is Focused on Downside Protection
We focus on investments that share five key features designed to protect value and minimize loss
In our experience, these key features contribute to performance consistency across market environments
Cash Flows
We focus on investments having durable
cash flows. We believe this can shorten
investment tenors, enhance price stability
and reduce severities
Covenants
Covenants are designed to
protect our rights and priority over
the assets and cash flows that
support our investments
Downside
Protection
MOO
Structure
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We design our investments with features
that stabilize performance, especially in times
of stress
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Asset Security
Our investments are always secured by assets.
When combined with proper structure, asset
security can greatly mitigate downside risks
For illustrative purposes only. References to "downside protection" or similar language are not guarantees against loss of investment capital or value.
Confidential - Not for Publication or Distribution
Control/Seniority
As credit investors, we know that
seniority and other forms of control
can lead to greater predictability of
outcomes
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