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Allianz GI

About Us

AllianzGI acquired certain assets of Sound Harbor Partners to provide US Private Credit Solutions and accelerate the global build-out of its Private Debt Platform. AllianzGI US Private Credit Solutions is an alternative investment manager that provides private credit to U.S. companies. Our investments include secured loans, senior debt, subordinated debt and equity securities. Our Credit Solutions Strategy invests in middle market businesses to fund balance sheet restructuring needs and strategic growth initiatives. Our Loan Strategy invests in secured loans held in CLOs and SMAs.

Overview

Sound Harbor Credit Solutions Strategy

The Sound Harbor Credit Solutions Strategy provides private credit to middle market businesses. We take a private equity approach to making credit investments that provide solutions across the capital structure and value for our portfolio companies. Our Senior Operating Advisors’ expertise enhances the team’s ability to diligence and provide oversight to portfolio companies. The investment team has a proven ability to source, structure and close on creative credit investments.

Typical Investment Parameters:

  • U.S. middle market companies with annual EBITDA between $15 million and $100 million
  • Individual investments of $10 million to $50 million
  • Secured loans, senior debt, subordinated debt and equity securities
  • Targeting high total returns from direct lending, distressed debt and opportunistic credit investments

Sound Harbor Loan Strategy

The Sound Harbor Loan Strategy invests in secured corporate loans held in CLOs and SMAs on behalf of a global investor base. We utilize a fundamental value approach to underwriting and managing a portfolio of secured loans and have reviewed over 5,000 loans and invested in approximately 1,000 loans since 2001. We leverage extensive contacts in the dealer community and expertise in non-investment grade assets and industry sectors to source and maintain a diversified portfolio seeking to maximize risk-adjusted returns.

Typical Investment Parameters:

  • U.S. companies with proven cash flows and asset values
  • Syndicated and secondary loan purchases
  • Senior secured and second lien bank loans
  • Targeting high income from corporate loans funding leveraged buyouts, refinancings, mergers & acquisitions and growth initiatives
Investment Strategy

Corporate Loans

  • Investments in syndicated, below investment grade secured loans for U.S. corporations
  • Sourcing enhanced by longstanding relationships with underwriters and financial sponsors
  • Disciplined investment process targets early identification of high risk credits
  • Portfolio diversification across issuers and industries minimizes credit losses

Direct Lending

  • Structure and underwrite corporate loans directly to U.S. companies
  • Provide flexible financing for middle market companies in need of critical capital
  • Extensive relationship and deal sourcing network
  • Targeting high current income from secured loans and subordinated debt investments

Distressed Debt

  • Discounted purchases of secondary market debt of underperforming companies
  • Invest in stressed and distressed debt, debt-for-equity restructurings and related investments
  • Principal protection sought from collateral and seniority in the capital structure
  • Seeking meaningful upside from financial, legal and operational restructuring

Opportunistic Credit

  • Opportunities created by market disruption, regulatory change and forced sellers
  • Debt purchased through DIP financings, private negotiations, secondary markets and in CLO’s
  • Complex situations where we have an insight into misunderstood opportunities and assets
  • Research-intensive process in pursuit of asymmetrical returns
Our Vision

Vision

  • The best returns, people and culture in private credit

Mission

  • To exceed client expectations by delivering exceptional returns and financing solutions

Values

  • ACCOUNTABILITY to our clients, partners and peers
  • COMMITMENT to teamwork, our people and their well-being
  • CREATIVITY in solving problems, attacking opportunities and managing risk
  • FIDELITY to our investment principles, process and culture
  • INTEGRITY in honoring our commitments and obligations
  • TRANSPARENCY in our communications and dealings
TracePoint

TracePoint Risk Rating System

Sound Harbor’s proprietary risk rating system, TracePointTM, provides a repeatable analytic framework for assessing fundamental value across market cycles. TracePoint provides our investment teams with a scalable system for investment approval, portfolio company monitoring, risk management and investor reporting. TracePoint is a Sound Harbor innovation deployed with our market-leading technology partner,  Black Mountain Systems.

The TracePoint Risk Rating System:

  • Facilitates the development of actionable investment ideas based upon detailed valuation, credit and risk analysis
  • Reinforces our culture of fundamental value investing utilizing a repeatable analytic process
  • Provides a transparent system to monitor investment exposure, portfolio company performance and investment decisions across market cycles

* The descriptions of the investment and risk management processes herein are simplified presentations of complex processes. The descriptions of the Investment Manager’s investment process and risk management process are intended to be representative, but the investment process and risk management process may be changed from time to time by the Investment Manager, and the Investment Manager may not perform certain steps, or may perform additional steps, in its discretion.

Recent Investments

Tecumseh

Aurora

 

To learn more about Tecumseh, please visit http://www.tecumseh.com


Veritas Steel LLC

Veritas Announcement (without date)

 

To learn more about Veritas Steel, please visit http://www.veritassteel.com


Precision Valve Corporation

Precision Announcement (without date)

 

To learn more about Precision, please visit http://www.precisionglobal.com/


* References to specific securities and their issues are examples of securities held in the portfolio and are not intended to be, and should not be interpreted as an offer, solicitation or recommendation to purchase or sell any financial instrument, an indication that the purchase of such securities was or will be profitable, or representative of the composition or performance of the portfolio. The securities identified do not represent all securities purchased, sold or recommended for portfolios. Actual holdings will vary by portfolio and there is no guarantee that a portfolio will have the same characteristics.

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