Stone Mountain Capital was shortlisted for the CTA Intelligence European Service Awards 2017 in the category 'Best Capital Introduction Service' and 'Best Consultancy Firm'.
Stone Mountain Capital was shortlisted for the Investment Week Investment Research Awards 2017 in the categories 'Best Investment Research Site' and 'Best Investment Research Blog'.
“The risk retention play in CLOs via CLO warehouses can be an interesting strategy for equity investors,” commented Oliver Fochler, managing partner and CEO of Stone Mountain Capital. “By investing in the CLO equity while the CLO is being structured, the investor can get a double-digit (20% per annum) upfront distribution within the first year when the CLO is ultimately sold.” He added: “The structure is complementary to traditional private equity investments, which target back-loaded multiples of 2.5x to 3x.” It is not unusual for CLO equity players to invest in the first-loss piece of the CLO warehouse, and then roll into the CLO equity. Investors also have the option to participate in the warehouse and then choose not to roll into the CLO. However, according to a UK-based investor, CLO managers generally want $10m to $20m for warehouse first loss participation, meaning that it tends to be the larger firms that participate, rather than smaller entities. Nevertheless, Mr. Fochler noted that there are a ‘good number’ of funds cropping up now that will acquire those first loss pieces. “It’s all a CLO equity play,” he said. “[Investors] are buying unrated, chunky and illiquid positions for a long-play strategy.” Interview with Oliver Fochler was covered on 29th March 2017 in Capital Structure under 'Use of sponsor-style CLO retention vehicles to drop; managers weigh alternative risk retention approaches as investors increase allocations to CLO equity strategies' (website requires registration).
Stone Mountain Capital was shortlisted for the CTA Intelligence US Services Awards 2017 in the category 'Best Capital Introduction Service' and 'Best Specialist Advisory'.
Alternative Assets Under Advisory (AuA) Total US$ 47 Billion Across Hedge Funds And Private Assets9/1/2017
As per 9th January 2017, Stone Mountain Capital has total alternative Assets under Advisory (AuA) of US$ 47 billion in hedge funds and private assets. We are mandated on assets of US$ 44.2 billion for capital introduction into leading hedge fund and fund of fund managers with long standing, solid performance track records, liquidity provision, standardized fund and managed account structures and established AuM across the strategies: equity, credit / fixed income, tactical trading and fund of hedge funds (FoF). Our 2017 focus is on the strategies: direct lending, CLO, global macro, CTA, volatility and the cryptocurrency bitcoin. We are mandated on US$ 2.8 billion of private assets (private equity and private debt) and corporate finance. Our 2017 sector focus is real estate, infrastructure / real assets, and capital relief trades (CRT) for insurers and banks and we provide financial structuring, rating advisory and private placements.
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