Cross Ocean Partners
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Strategies

The firm manages both commingled credit funds and bespoke single investor funds for large institutional clients who require them in both hybrid or evergreen and traditional closed-ended formats. Cross Ocean started with its core Special Situations strategy and has subsequently expanded into Senior Credit and CLOs. Cross Ocean seeks to be a constructive and responsible lender and has built long-standing relationships across banks, sponsors and corporates.

Special Situation Credit

Global, Europe, US

1. Generally targeting senior secured corporate credit acquired via the secondary market

    • Loans are the largest asset class with bonds or notes also a primary focus
    • Long biased strategy focused on North America and Western Europe

 

2. Sourcing less broadly syndicated, illiquid senior credit investments

    • Investments with limited pricing transparency and focusing on sourcing-intensive, secondary market purchases
    • Primary sources of assets: Commercial and Regional Banks, Insurance Companies, CLO’s
    • Ability to pivot to more liquid investments during periods of market dislocation

 

3. Targeting motivated, non-economic sellers

    • Sellers’ impetus not necessarily driven by or commensurate to their view of intrinsic value
    • Selling rationale may include regulatory reasons, credit rating change, extensive amendment negotiations, regulatory capital charges, industry or sector exposure limits, or, fund redemptions

 

4. Focused on the top of the capital structure

    • Target first lien or ‘first dollar’ attachment point ensuring no other stakeholder has a senior claim
    • Helps limit the severity of loss in any downside scenario

Senior Credit

Europe, US

  • Off-shoot strategy to Special Situations focusing on similar assets and opportunities but with more performing investments offering higher quality risk
  • Emphasis on achieving a repayment of invested capital from contracted cash flows and principal, with conservative credit metrics, over equity or equity-like risk
  • Leverages off investment and sourcing teams research and market knowledge from the Special Situations strategy
  • Competitive advantage of being able to provide sellers of portfolios a single buyer solution to investments spanning across both Senior Credit and Special Situations

CLOs

Europe

  • Investing in first lien debt of typically sponsor backed companies
  • Credit intensive investment process emphasizing credit quality and structure
  • Active trading approach to managing the portfolio throughout the life of the CLO to maximize returns
  • Establish core positions in familiar credits with proven track records
  • Benefit from long-track record of the team and its PE sponsor relationships
  • Utilize the wider Special Situation research teams experience on credits (and vice versa), especially, during periods of market turmoil

Firmwide Assets under Management ($ bn)

 

Numbers are subject to rounding. Please consult the “Disclaimer for emails” page for additional information about AUM. Contains information and opinions of Cross Ocean and has been prepared in good faith on the basis of reasonable, honestly-held beliefs. Not to be construed as investment, legal, business or tax advice.

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