Monarch’s investment objective is to seek superior risk-adjusted rates of return wherever such opportunities exist within the distressed market. Our investment team’s goal is to identify inefficient segments of the credit markets that provide for attractive distressed investments and to leverage Monarch’s core skills and experience in distressed debt to create value. Monarch’s distinguished approach relies on the experience and relationships our team has cultivated over twenty-four years of investing in distressed debt.
Research-Driven Approach: Using our expertise and through rigorous fundamental research of each company, capital structure and restructuring process, we seek to develop an advantage of understanding over distressed sellers. We invest on a “bottom-up” basis, selecting what we believe to be the most attractive distressed debt opportunities at a given time, building our portfolio based on rigorous analysis of each individual investment, rather than a broad view of market factors.
Active Distressed Debt Investing: We seek to be active in all of our investments and believe that having significant influence or control in the process or the company is essential to enhancing the value of our investments. Our strategy is event-driven and near-term catalysts, primarily the completion of a debt restructuring process, covenant defaults, or upcoming maturities are critical for Monarch to make an investment.
Flexible and Opportunistic Mandate: We believe that our ability to invest across different sized capital structures, geographies and industries, and our willingness to explore newly distressed areas of the market creates a distinct advantage in identifying opportunities across cycles and enables us to invest in attractive situations at any given time. Our primary focus on investments in small to mid-sized capital structures allows us to acquire meaningful positions and thus pursue our activist approach. Moreover, this segment of the market tends to have higher default rates, providing for more consistent opportunities across distressed cycles and is an area where we often face less competition. Our 20 plus years of experience investing in and restructuring companies in North America, Europe and other parts of the world enables us to navigate various jurisdictions and capitalize on such opportunities when they arise. We have the ability and willingness to be first movers, aiming to take advantage of opportunities in newly distressed segments of the market as they arise and allowing us to identify situations that leverage our restructuring skills and event-driven approach.
Risk Management: The core of our strategy is to pursue investments in quality companies or assets that are hampered by capital structure stress and to reduce risk by focusing on investments in senior and senior secured debt, while maintaining the flexibility to invest throughout the capital structure.