Golub Capital's Opportunistic Credit business targets market dislocations where we identify investment opportunities with attractive risk-return profiles. Our team believes that markets for credit and credit-related instruments routinely exhibit pricing anomalies that can be profitably captured through a combination of granular fundamental research; deep knowledge of the debt capital markets, restructuring scenarios, and the bankruptcy process; and nimble sourcing and trading capabilities. Our Opportunistic Credit business deploys capital in liquid and illiquid investment strategies.
GC Synexus manages a liquid, long/short credit investment program focused on generating attractive absolute returns with prudent risk management. The team employs a set of credit strategies to identify favorable, asymmetric risk-reward opportunities that are rooted in what the team believes are differentiated insights. The strategies of GC Synexus include, but are not limited to:
- Mispriced Businesses: find securities priced significantly above or below their fundamental fair value, with visible catalysts for correction
- Event-Driven and Special Situations: develop differentiated view on credit-relevant corporate actions (e.g., payment dates, refinancing, M&A)
- Bankruptcies and Reorganizations: evaluate securities of bankrupt or near-bankrupt issuers based on our evaluation of stakeholders' likely tactics in restructuring
- Capital Structure Arbitrage: exploit anomalies within a company's capital structure
Golub Capital also invests in illiquid credit assets that may not fit neatly in traditional fixed income strategies. This strategy focuses on longer-duration, off-the-run assets with a high probability of principal protection and an attractive illiquidity premium. Typically, investments in illiquid credit assets will feature low expected correlation to market and macroeconomic risks.
Our team believes it has developed a unique analytical capability using the resources of the Golub Capital institutional platform, including:
- Over 300 portfolio companies that provide intelligence about the real economy directly from “Main Street”
- An Executive Council of industry leaders and broad access to C-Suite expertise that brings unique insights and assists the team in generating and refining ideas
- A network of leading private equity sponsors who provides insights into special situations
- Synergies among Golub Capital's business units
We believe the Opportunistic Credit business combines the strength and robustness of the Golub Capital institutional platform with the entrepreneurial nimbleness required to take advantage of opportunities in rapidly-changing markets.