AlbaCore Capital Group Closes Dislocation Fund
European credit specialist AlbaCore Capital Group (“AlbaCore”) announces the final close of AlbaCore Investment Opportunities L.P. (“AIO”). AlbaCore secured over $1bn of commitments for the dislocation strategy, both in comingled and SMA format, which started investing at the depth of the crisis in mid-March. AlbaCore’s dislocation investing generated a 55% IRR1 since launch to the end of November 2020, whilst benchmark credit indices saw low single digits with year to date returns of 1.7%2. AlbaCore has generated positive returns across all strategies to date in 2020.
AlbaCore launched the dislocation strategy to engage with the opportunity in what it viewed as a credit picker’s market. The team maintained their fundamental approach and were focused on companies that they have tracked for years. Many companies which have consistently been regarded as strong credits through the end of 2019, had yet to present a double digit total return opportunity. During the 2020 dislocation, these credits came into AlbaCore’s relevant price target range, whilst maintaining their strong fundamentals. With the deep knowledge and credit underwrite in place, the team was poised to capture the opportunity.
Bill Ammons, Founding Partner and Portfolio Manager Officer at AlbaCore Capital Group, commented:
“We were in a unique position to move quickly and yet maintain AlbaCore’s disciplined process and depth of credit analysis. The team’s persistent fundamental credit research combined with our 2019 CLO warehouse launch generated an extensive watch-list that covered a significant portion of the European universe. When the price was right, we were ready.”
The launch of a dedicated dislocation strategy can be seen to consolidate AlbaCore’s position as one of the leading European specialist credit managers. AlbaCore is proud to have extended its global investor relationships, despite the challenges of a global pandemic, and extends thanks also to existing investors who continue to be valued partners.
David Allen, Founder and Chief Investment Officer at AlbaCore Capital Group, commented:
“This year has required an agile approach to investing and a razor sharp focus on risk and relative value. At AlbaCore, we have navigated the 2020 market by activating our dislocation strategy, maintaining hands-on management of our AlbaCore Partners flagship funds and significantly increasing our investments in senior secured opportunities across our strategies. We are delighted to continue to expand our product offering for our partners in a thoughtful and opportunistic way. We look forward to continuing to deliver for our investors across the credit spectrum.”
AlbaCore’s Product Strategies:
AlbaCore Partners: Both of the flagship Partners funds, which have a hybrid strategy investing in private and public credit, actively drew capital to 85% in March 2020. The funds have invested $10.4bn3 and achieved 11%4 returns since inception with significant alpha capture of +700bpswhen compared to relative benchmarks5.
Private Credit Investing: Whilst liquid market opportunities are in focus this year, AlbaCore has continued to structure a number of large, off-market, bespoke private transactions, committing $2.4bn6 of capital alongside co-investors. With this year’s activity, AlbaCore has now offered over $3.5bn7 in co-investments since inception - a core part of the AlbaCore offering.
Liquid Credit Investing: The AlbaCore team has invested over €8.7bn8 in liquid investments across strategies since inception, delivering a 10.9%9 IRR. To capitalize on this year’s market volatility and the team’s expertise, AlbaCore saw significant activity in liquid markets across the platform. This part of the AlbaCore strategy provides greater flexibility for investors and can be maneuvered to focus on specific areas of the seniority spectrum.
CLO strategy: AlbaCore priced its maiden Collateralized Loan Obligation (“CLO”) in June 2020, achieving the tightest AAA spread for a European CLO following the pandemic at time of launch10. AlbaCore combined a negative ESG screening criteria and risk focused ESG investment considerations with its agile fundamental research approach. This outcome as a first-time issuer is a testament to the broader markets’ understanding of the quality of the team and investment process at AlbaCore.
About AlbaCore Capital Group
AlbaCore is one of the leading European credit specialist focused on public and private corporate credit markets. The senior investment team have been investing with this hybrid strategy for over a decade11. Founded in 2016, AlbaCore has invested $14.7bn12 across 275 companies for global pension funds, sovereign wealth funds, consultants, insurance companies, family offices and endowments.
AlbaCore is focused on consistently outperforming the market in the long term while protecting investor capital. The credit selection process is based on fundamental research with a focus on capital preservation, ESG factors and risk-adjusted returns.
Headquartered in London and with an office in Dublin, AlbaCore has a partnership approach with values at the center of the AlbaCore community.
1 As of 30 November 2020. Gross Internal Rate of Return (“IRR”) is calculated using fully equalized cash flows between the fund and an investor as if all current investors had been committed to the fund from inception. Rate of return calculated does not include management or performance fees, which would be reflected in a net IRR (that would be lower) actually received by investors.
2 As of 30 November 2020. 50:50 blended return of S&P Leveraged Loan Index and Barclays High Yield Index.
3 Invested capital is the sum of all 'buy' trades for the referenced AlbaCore mandates during the year of 2020 through to 30 November, and includes recycled capital.
4 Gross Internal Rate of Return (“IRR”) is calculated using fully equalized cash flows between the fund and an investor as if all current investors had been committed to the fund from inception. Rate of return calculated does not include management or performance fees, which would be reflected in a net IRR (that would be lower) actually received by investors.
5 We have used BAML Euro High Yield index, S&P Euro Lev Loans Index as benchmarks for the performance of European & relevant markets for the purpose of this analysis only. Market performance figures are sourced from Bloomberg AlbaCore does not manage its portfolio on the basis of the constituents of each of benchmarks, and therefore the analysis and comparisons made here may change materially over time.
6 Invested capital is the sum of all 'buy' trades for the referenced AlbaCore mandates, for private side investing only, during the year of 2020 through to 30 November, and includes recycled capital.
7 The co-investment opportunities represent the USD equivalent aggregate amount of investment opportunities we have offered to co-investors through AlbaCore managed vehicles or by a direct investments by the co-investor. This also reflects any potential co-investment opportunities offered, but not executed.
8 Invested capital is the sum of all 'buy' trades for AlbaCore mandates (including the AlbaCore Partners Funds, co-invest sidecar to these Funds, AIO, AlbaCore’s CLO and client SMAs), and includes recycled capital.
9 As of 30 November 2020. Gross Internal Rate of Return (“IRR”) is calculated using fully equalized cash flows between the fund and an investor as if all current investors had been committed to the fund from inception. Rate of return calculated does not include management or performance fees, which would be reflected in a net IRR (that would be lower) actually received by investors.
10 Source: Bloomberg as at 07 December 2020.
11 Including period prior to AlbaCore at the Canada Pension Plan Investment Board (“CPPIB”).
12 Invested capital is the sum of all 'buy' trades for all AlbaCore mandates since inception to 30 November 2020, and includes recycled capital and co-investment.
For media enquiries:
+44 (0)7989 528421
+44 (0)7808 585184
About Business Wire
(c) 2018 Business Wire, Inc., All rights reserved.
Business Wire, a Berkshire Hathaway company, is the global leader in multiplatform press release distribution.
Subscribe to releases from Business Wire
Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from Business Wire
Andersen Global Enters Malawi19.1.2021 15:30:00 CET | Press release
Andersen Global establishes a foothold in the Malawi market through a Collaboration Agreement with Knight & Knight, bolstering its platform on the African continent and adding additional coverage in the eastern region. Established in 2003, Knight & Knight is a full-service law firm specializing in all facets of business law with capabilities in banking and finance, litigation, intellectual property, commercial, real estate, employment, mergers and acquisitions, and regulatory matters. With two partners and six professionals, the firm serves individuals and organizations of various sizes, representing a large number of businesses across the country as well as transactional entities, multinational corporations, banking and financial institutions, public sector undertakings, various ministries, state and central government authorities, and nongovernmental organizations. “At the core of our business, our philosophy has always been to offer best-in-class services designed to meet our client
Pitney Bowes Appoints Ana Maria Chadwick as Executive Vice President and Chief Financial Officer19.1.2021 15:00:00 CET | Press release
Pitney Bowes (NYSE: PBI), a global technology company that provides commerce solutions in the areas of ecommerce, shipping, mailing and financial services, today announced that Ana Maria Chadwick has been appointed Executive Vice President and Chief Financial Officer, effective January 29, 2021. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210119005596/en/ Pitney Bowes Appoints Ana Chadwick as Executive Vice President and CFO (Photo: Business Wire) Ms. Chadwick joins Pitney Bowes from GE Capital where she held several executive positions. Her responsibilities included both operational and financial positions, along with strong transformational and financial services experience. Most recently, Ms. Chadwick was President and CEO of GE Capital Global Legacy Solutions. Previously, she was Controller of GE Capital Americas and Chief Financial Officer at GE Capital Energy Financial Services. Ms. Chadwick also has substantial glo
Globality, the World’s First Smart Sourcing Platform Powered by AI, Raises $138.3 Million of Series E Funding From Sienna Capital, a Wholly Owned Subsidiary of Groupe Bruxelles Lambert, and the SoftBank Vision Fund19.1.2021 14:00:00 CET | Press release
Globality, the leading AI-powered digital solution for sourcing strategic services, announced today it has closed an investment of $138.3 million from Sienna Capital, a wholly owned subsidiary of Groupe Bruxelles Lambert (GBL), and the SoftBank Vision Fund. This new investment brings Globality’s total funding to $310.3 million since being founded five years ago. As part of the investment, Colin Hall, vice-chairman of Sienna Capital, will join the company’s board of directors. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210119005308/en/ Joel Hyatt, Co-Founder, Chairman, and CEO of Globality (Photo: Business Wire) The Series E round of funding enables Globality to fuel its rapid growth by investing in additional AI technology capabilities. It also directly supports the company’s efforts to increase its global scale and capacity; add world-class talent to the engineering, product and client teams; and expand its marketing an
Zynga Launches Harry Potter: Puzzles & Spells in South Korea19.1.2021 14:00:00 CET | Press release
Zynga Inc. (Nasdaq: ZNGA): This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210119005175/en/ Zynga Launches Harry Potter: Puzzles & Spells in South Korea (Graphic: Business Wire) WHO: Zynga Inc. (Nasdaq: ZNGA), a global leader in interactive entertainment, announced that Harry Potter: Puzzles & Spells has launched in South Korea. Officially licensed from Warner Bros. Games and published under the Portkey Games label, this award-winning mobile game has begun rolling out to players in South Korea, fully localized in Korean. WHAT: Recipient of a Google Play 2020 Award for Best Casual Game and Apple App Store Editors’ Choice Award, Harry Potter: Puzzles & Spells is now available for free download on the App Store and Google Play in South Korea. Players in this region can access all current and previously released content, featuring more than 1,000 magic-infused Match-3 puzzles inspired by the story of Harry Potter and the wizardin
PPRO Raises $180 Million for the Next Era of Local Payments Infrastructure, Is Now Valued Over $1 Billion19.1.2021 14:00:00 CET | Press release
PPRO, the global provider of local payments infrastructure, today announced over US $180 million in new investment. Investors include Eurazeo Growth, Sprints Capital, and Wellington Management. This news comes just six months after the company raised US $50 million from Sprints Capital as well as Citi Ventures and HPE Growth. PPRO’s valuation is now over US $1 billion. PPRO has established itself as the most trusted infrastructure provider in the cross-border payments space, powering international growth for payment service providers and platforms such as Citi, Elavon, Mastercard Payment Gateway Services, Mollie, PayPal, and Worldpay. PPRO’s local payments platform and expert services help its customers get the industry’s best conversion rates in markets around the world by allowing online shoppers to pay with their preferred payment method. PPRO’s valuation is underscored by its rapid growth last year. The company doubled its year-on-year transaction volumes in the fourth quarter of 2
ARTMS and Isotopia Molecular Imaging Announce Successful Multi-Curie Labeling of PSMA-11 With Cyclotron Produced 68 Ga Utilizing the QUANTM Irradiation System™ and Solid Targets19.1.2021 14:00:00 CET | Press release
ARTMS Inc. (ARTMS) and Isotopia MolecularImaging (Isotopia) are pleased to announce the successful radiolabeling of Isotopia’s prostate cancer imaging kit product, PSMA-11, with over 2 Ci of cyclotron-produced Gallium-68 (68Ga) using ARTMS’ proprietary Quantum Irradiation System™ (QIS™) solid target system. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210119005044/en/ The specially designed Prostate-Specific Membrane Antigen (PSMA) kit for the preparation of 68Ga-PSMA-11 (a radiopharmaceutical targeting PSMA for the imaging of prostate cancer using Positron Emission Tomography (PET)) was radiolabeled with high activity cyclotron produced 68Ga following irradiation times of less than two hours. The Isotopia kit was radiolabeled with between 500 mCi and just over 2900 mCi of 68Ga following multiple successful 68Ga production runs utilizing the QIS™ and ARTMS’ high performance 68Zn solid targets. The resultant product demonst
Everbridge Unveils Next-Generation Front-End Alerting Interface for Industry-Leading Global Public Warning Platform19.1.2021 13:30:00 CET | Press release
Everbridge, Inc. (NASDAQ: EVBG), the global leader in critical event management (CEM), today announced the launch of its enhanced Public Warning Center, the first-of-its-kind modular and multi-channel front-end interface featuring the ability to create and transmit a combination of cell broadcast and address-, group-, and location-based SMS alerts for countrywide alerting from a single console. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210119005380/en/ Critical Event Management (CEM) leader announces new Public Warning Center (Photo: Business Wire) Offering a best-in-class user interface (UI) and modern design, the highly-flexible Public Warning Center serves as the gateway for the industry’s largest and only public warning system supporting any configuration from basic single-channel to more sophisticated hybrid options combining cell-broadcast and multi-channel technologies, including SMS, video, social media, TV, rad