We manage fund portfolios with total assets of EUR 800 million

Private debt is a fast-growing asset class in the alternative investment group. It allows investors to realistically diversify their portfolio by adding exposure to credit risk. The premium for taking on this risk makes it possible to generate attractive returns.

A key element of private debt financing is that the asset manager (CVI or another company) employs an experienced team of professionals whose job is to find the best investments available on the market that match the strategy. This team then negotiates the terms individually in a one-on-one setting, often without any competition. This team then very actively monitors all investments to make sure performance is high.

CVI manages fund portfolios in three key strategies: (1) private debt, (2) sector-focused private debt, and (3) mezzanine. The first two strategies can be classified as lower-risk strategies, as they aim to invest in debt instruments that have strong collateral and generally tend to be at senior levels (meaning that they should be among the first to be repaid in the event of difficulties). Both strategies aim for good diversification, the main difference being that the first strategy invests in all sectors (subject to certain restrictions), while the second one invests only in a more narrowly defined sector. The third strategy focuses on higher-risk investments that can be considered somewhat closer to equity investments, but still benefit from some safeguards, and in the case of difficulties, mezzanine investors are paid before equity investors.

While CVI focuses on investment portfolio management (finding companies in need of capital, negotiating investment terms, monitoring investments, overseeing repayments) and to some extent investor relations (finding investors for funds, explaining performance), it also works with a number of top-tier institutions. These include alternative investment fund managers (TFI Investment Fund Companies), fund administrators, brokerage houses, custodians, auditors.