We will invest in all parts of the capital structure and will take a holistic view of companies’ balance sheets with a strong focus on debt obligations, such as senior loans, bonds, mezzanine, and convertibles of mid-market issuers. We will invest via primary and secondary markets and will favor situations, which are complex and require in-depth analysis.

The market for corporate debt financings with sub-investment grade profiles in Bulgaria and rest of Europe is undergoing a change as part of the clients of traditional capital providers (i.e. banks) are redirected to alternative providers of capital. Such a deep structural shift - away from banks and towards alternative providers of capital – inevitably creates distortions and generates opportunities for investors with experience in special situations investing across a wide range of debt instruments (loans, bonds, mezzanines, etc.).

We expect to see opportunities with outstanding risk-return profiles in an environment, which will be characterized by government austerity and low growth rates, but our key focus will be trade receivables. Trade finance assets are attractive due to their historically low default rates and counter-cyclical nature, and there are substantial investment opportunities due to the “trade finance gap”.

The Fund will seek overlapping of different structures for the purpose of business financing and will consider opportunities for acquisition of financial companies in order to be able to expand its “product” portfolio and respond flexibly to the demand for funding.

The Fund’s portfolio will be diversified across a wide range of sectors: construction, manufacturing, services, transport, IT, trade, commodities,
financial services.