The Cairn Capital Loan Opportunities Fund (“CCLOF”)
- CCLOF invests in European leveraged loans primarily at a senior secured level, but also second lien and mezzanine. It is an open ended Jersey registered investment company, classified as an expert fund
- Dislocation in the credit market over the summer has left syndicating banks with a portfolio of funded underwriting commitments. Pressure on bank balance sheets will require banks to sell down these assets. Many traditional buyers (CLOs and Hedge Funds) are absent from the market at the moment. This has added to supply in the market with a concomitant reduction in asset prices.
- CCLOF will take advantage of the current dislocation to buy "liquidity stressed" assets resulting from the hung bridges, secondary disposals and lack of demand
- CCLOF will employ medium leverage (up to 5 times)
- CCLOF`s investment objective is to return to investors c.12% per annum (net of fees)
The Cairn Capital Structured Credit Fund (“SCF”)
- SCF was launched late in 2007 with locked up capital from seed investors
- The fund seeks to capitalize on current dislocations and opportunities across the spectrum of structured credit asset classes
- Returns targeted to be in excess of 15% net of fees, performance fees are only paid once performance exceeds a LIBOR plus hurdle
- Using index, public and bespoke positions in corporate credit, ABS and leveraged loans when opportunities are seen to express current market views
- Portfolio allocation will include shorter term highly liqued trades as well as longer term high conviction trades designed to capitalize on market dislocations
- SCF builds upon the risk management, research, execution and infrastructure of the broader Cairn platform
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