Alcentra

We’re delighted to have been part of the financing package supporting Aquiline Capital Partners’s recent acquisition of Isio, a leading provider of consulting and advisory services to UK pension schemes and adjacent markets. Our European Direct Lending platform has supported Isio since 2020, and we’re looking forward to continuing our relationship with them in the next phase of their growth journey.   You can find out more about Isio’s acquisition here: https://lnkd.in/eeknCBKZ

  We’re excited to publish our inaugural Task Force on Climate-related Financial Disclosures (TCFD) report – which marks a significant milestone in Alcentra’s responsible investment & climate journey. We’ve put a huge amount of work into detailed, forward-looking, quantitative analysis which models the impacts of different climate scenarios for all our portfolio companies that we directly invest in across our investment strategies. We’re confident that our climate scenario modelling is among the most sophisticated and in-depth within the alternatives space – and that's reflected in the findings of the report, which you can read in full here: https://lnkd.in/e92egQFZ   As a firm, we’re also proud to have achieved net zero for Alcentra’s own emissions across both Scope 1 and Scope 2.   Take a look at some of the highlights from the report below, as well as thoughts from our Head of Responsible Investments Vai Patel, Head of European Credit Research Tim Raeke and COO of Global Business Development Ruth Davis.   #TCFD #responsibleinvesting #impactinvesting #ClimateAction #Climatechange #esg #assetmanagement #sustainablefinance #privatecredit #alternativecredit

Congratulations to Team Alcentra, who successfully defended their trophy at the second edition of Franklin Templeton’s charity football tournament Hosted at the Gaughan Group Stadium, home of Leyton Orient Football Club, the tournament was held in support of Young Roots, a London charity that works working with refugees and asylum seekers aged 11 to 25, most of whom are alone in the UK without their families. You can read more about the amazing work that Young Roots do here: https://lnkd.in/ecUkyN2Y 24 teams from across the London financial services scene battled it out for the coveted Franklin Templeton Cup, with Alcentra once again emerging victorious. In all, a fantastic day of competition raised a remarkable £13,000 on behalf of Young Roots. Well done to the victorious Alcentra squad - Jack Nolan, Samuel Moody, Henry Johnston, Adam Gould, Aasir Osman, Paraj Brahmbhatt, Charlie Newman and @Johnny Greenfield– and their inspirational manager Chloe Collins. Enjoy the video below showcasing some of the many highlights of Team Alcentra’s road to glory. We’re already looking ahead to the three-peat 😉 https://lnkd.in/eysJqsUX 

With the impact of so-called creditor-on-creditor violence causing increasing concern in the sub-investment grade credit market, how exposed are European investors to the risks of this growing trend? Our new white paper – “Creditor-On-Creditor Violence In Europe: Fertile ground or safe harbour?” – delves into the emergence of liability management exercises (LMEs), what risks they pose for debt investors, and why European investors are better insulated than their global counterparts. Written by Roger Lawrence, Head of Legal for our Special Situations and Liquid Credit teams, the paper provides timely insight into an increasingly mainstream issue, and explores: - How recent changes to credit documentation have impacted the way companies address maturities in times of financial stress. - The crucial differences across jurisdictions, evident in the way US and European leveraged finance markets respond to these challenges. - Why debt investors in Europe are more insulated against the risk of losing value to some of the more aggressive tactics of LMEs (known colloquially as “creditor-on-creditor violence”). - Why some of the more aggressive deal structures in the US will not survive contact with the reality on the ground in Europe. - How the domestic legal regime and conventions of the European market will act as an important check, continuing to provide debt investors with downside protection going forward. Read the full paper ↓ or here: https://lnkd.in/ePhNA8bA #specialsituations #distresseddebt #privatemarkets #alternatives #assetmanagement

2023 was another strong year of progress for Alcentra's ESG and responsible investing activities, which we've detailed in our latest stewardship report.   Among their key achievements last year, our ESG & Investment teams have:   - Published several thought leadership pieces including a white paper on the evolution of the Sustainability-Linked Loan market and two dedicated climate guides which were circulated to all borrowers and CLO managers we invest in - Intensified our dialogue with all borrowers on emissions data to improve the availability of climate disclosure in the sub-investment grade market - Increased the number of sustainability-linked loan facilities across our Direct Lending platform to incentivise sustainable behaviour and achieve impact - Enhanced the ESG & Responsible Investment team through increased resources and investment in its operational efficiency The headway we made last year is proof positive of our ongoing commitment to responsible investment, and we'll be continuing to work alongside our clients, borrowers, peers and policymakers to enhance the impact of our sustainability work.   You can explore our 2023 Stewardship Report in full below or here: https://lnkd.in/eMjCZCYn   For more info, please reach out directly to Vai Patel & Jaya Puri-Parsons, and you can read more about all of our ESG efforts to date in the Responsible Investment section of our website: https://lnkd.in/e7gHQyCP #responsibleinvesting #impactinvesting #climate #esg #assetmanagement #sustainablefinance #privatecredit

Last week, a team of volunteers from Alcentra’s London office paid another visit to Refettorio Felix, a drop-in centre and community kitchen serving vulnerable people in the Earl’s Court area. Our volunteers - Katie Dunne, Chloe Collins, Bethany Smith, Kirsty Bailey-McGovern, James Harvey & Howard Sharp - helped serve a homemade, three course lunch, free to homeless people and vulnerable adults of varying needs. Throughout the day our team were able to experience first-hand all that the fantastic team at Refettorio Felix do to support the local community, as well as tackling important issues such as food waste and food poverty. This was Alcentra’s second time volunteering at the centre so far this year, and we’re proud to give our continued support to such a good cause. You can find out more about Refettorio Felix and the brilliant work they do here: https://lnkd.in/gYFuNcT

Our head of ESG Vai Patel spoke to GlobalCapital about sustainability-linked loans (SLLs), on 1) how borrowers can use these structures to help meet their sustainable investment goals and 2) lenders can achieve their impact objectives. Thanks to Jon Hay and Ana Fati for the insightful piece, which you can read here👇 #responsibleinvesting #climate #esg #assetmanagement #sustainablefinance #privatecredit #impactinvesting

For the second year running, Alcentra are proud to support Suited & Booted and Smart Works Charity, two fantastic charities that provide interview clothing, job advice and mentoring to those looking for work. Thanks to Alcentra's Katie Dunne and Nancy Bostock, seen here delivering the collection of recycled clothes from our London team, and to all those who generously donated. You can find out more about the great work these charities do here: https://smartworks.org.uk/ https://lnkd.in/enVjxdyi

There’s been a huge amount of discussion this year about the competition between direct lending and the broadly syndicated loan (BSL) in upper mid-market dealmaking. Our Direct Lending and Liquid Credit teams have collaborated on a new paper to explore what impacts this prevailing trend has had, including: Segmentation in the upper mid-market Margin compression across the upper mid-market Relaxation in upper mid-market terms Worsening outcomes for upper mid-market LPs It's a trend that looks certain to have a major influence on the private credit and bank loan landscapes throughout 2024. Who stands to benefit, and who will be left feeling the impact? And how should LPs be reacting? To more hear of our teams’ thoughts, read the full paper on our website: https://lnkd.in/eXarFRPE #privatecredit #leveragedloans #directlending #assetmanagement

Driven by intensifying regulatory demand, #CLO managers are under increasing pressure to properly measure and disclose carbon footprint of their investment portfolios. But the importance of understanding climate risks goes beyond just reporting and impacts all participants in the investment value chain (across asset owners, managers and borrowers). To help CLO managers understand their climate data reporting requirements and reduce their carbon footprints, our ESG team & Structured Credit team – led by Vai Patel and Cathy Bevan respectively – have collaborated to produced a climate guide. This provides a step-by-step resource for understanding TCFD regulations, calculating and reducing emissions and setting science-based emissions targets for their portfolio companies. You can explore the guide for CLO managers below. Please also check out our website for the Lenders and Borrowers guide: https://lnkd.in/ehy5vCiB #responsibleinvesting #tcfd #climate #esg #assetmanagement #sustainablefinance #stewardship #leveragedloans