The strategies seek to capitalise on prevalent global dislocations arising from distress, deleveraging, and financing needs.
Private Markets Alpha (PM Alpha), the digital marketplace for asset managers, wealth managers, advisors and distributors to access and distribute private markets investments, has launched its first regulated product – Global Distressed & Special Situations – a PM Alpha mini-blend of three underlying strategies from Apollo and Oaktree that seek to capitalise on prevalent global dislocations arising from distress, deleveraging, and financing needs across corporate Europe and North America.
“Our Global Distressed & Special Situations product offers an exclusive entry point for private investors into three underlying strategies that are generally limited to institutional investors, whilst ensuring attractive terms that are on par with institutional terms. We are delighted to be able to offer this product specifically designed for our wealth and asset management partners’ underlying private clients, with enhanced diversification, downside protection, and access from a minimum investment amount of EUR 125,000 for their professional and non-professional qualified investors.” Tom Douie, PM Alpha CEO
PM Alpha’s Global Distressed & Special Situation’s diversified investment strategy is targeting high-yielding senior secured and asset-backed equity positions, and seeks to allocate equally across three PM Alpha-selected strategies from two of the most established specialised distressed debt and special situations investment managers, with a realised track record of successfully deploying capital through previous periods of market dislocations.
The product will seek to capitalise on the global corporate dislocations where there is a key opportunity to acquire discounted senior positions across distressed and over-leveraged middle-market asset-heavy companies requiring urgent capital.
“We believe that today’s environment, with increased funding gaps caused by higher interest rates, brings a more dynamic backdrop for specialist investors across distressed, special situations and real assets. We consider it is a salient entry point for distressed debt and special situations managers who are increasingly seeing more motivated and distressed assets sellers – those focused on liquidity and refinancing risks – as interest rates remain higher for longer than expected, alongside an increased risk of a ‘hard landing’ within the trough of the current recessionary period. The current broadened opportunity set is emerging with three key elements: repricing, refinancing, and restructuring of large corporate assets and SMEs. Non-traditional lenders, like specialist distressed and special situations investors, can capture assets from corporates at reduced valuations and better terms.” Alexis Weber, PM Alpha CIO