Damien Miller, global head of special situations, Alcentra

Alcentra – Best Distressed Securities Manager

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Alcentra focuses its investment strategies on sub-investment grade debt capital markets of Europe and North America. It includes both Alcentra Ltd., operating out of London, and Alcentra NY, LLC operating out of New York City; only Alcentra NY offers services in the US.

Established in March 2002, Alcentra became a subsidiary of BNY Mellon in 2006. Alcentra Ltd. and Alcentra NY, are subsidiaries of BNY Alcentra Group Holdings, Inc. As of December 31, 2010, Bank of New York Mellon Corporation owned 94 per cent of BNY Alcentra Group Holdings and the management and employees of Alcentra owned the remaining six per cent.

Currently managing approximately USD16.4bn of assets through approximately 43 private funds and managed accounts, Alcentra’s team of 57 investment professionals operates out of London and New York. Alcentra’s overarching investment strategy is twofold, combining extensive fundamental research and credit analysis with active portfolio management to determine the best credit instruments in which to invest on behalf of its private fund and institutional clients.

London-based Damien Miller (pictured), who joined Alcentra in July 2007, is global head of special situations. With a team of five investment professionals in London and New York, Miller assumes full responsibility for portfolio management and trading of all distressed, high yield debt and equity investments on behalf of its institutional and private fund clients seeking exposure to special situations.

The Alcentra Special Situations team aims to generate strong returns by investing directly or indirectly in distressed debt opportunities across the capital structure of companies in Europe and North America. Client portfolios may vary but typically comprise a mixture of loans, equity and both secured and unsecured bonds. Fundamental views are expressed by being long or short in these asset classes. The strategy does not apply external leverage.

Strategically, Miller places greater emphasis on debt, allocating between five classes of distressed investment: fundamental value, control investments, private/illiquid investments, event-driven investments and capital structure arbitrage. In addition to the dedicated resources of his team, Miller can call upon Alcentra’s 22 sector specialist analysts when managing the portfolio as well as senior leaders at Alcentra, which brings an average of over 11 years’ distressed experience to the table.

According to Miller, the range of market opportunities last year was fairly broad. “A large amount of liquidity in the system opened up the capital markets, and we saw the bond market resurrect itself in Lazarus-like proportions,” he says, adding that a decent portion of performance was based on leveraged loan positions in the event-driven space.

“We believe we’re going to be in for a long cycle of deleveraging following the bursting of the credit bubble. What makes this cycle so exciting is that large-scale government central bank intervention, in our opinion, is distorting the deleveraging effort, so we expect to see periods of volatility. That should create opportunities for us to purchase assets in the stressed and distressed space.” Europe will be an area of key focus for the Alcentra Special Situations team, according to Miller, because its multi-jurisdictional nature adds to the potential for assets to be mispriced.

Before joining the firm, Miller was based in New York where he worked as a director, portfolio manager and trader for Barclays Capital’s special situations group between 2002 and 2006, managing a proprietary fund that at its peak reached USD1bn.

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Disclaimer

 

This is a financial promotion and is not intended as investment advice. The information provided within is for use by professional investors and/or distributors and should not be relied upon by retail investors.

 

All information relating to Alcentra has been prepared by Alcentra Limited for presentation by BNY Mellon Asset Management International Limited (BNYMAMI).  Any views and opinions contained in this document are those of Alcentra at the time of going to print and are not intended to be construed as investment advice.  BNYMAMI and its affiliates are not responsible for any subsequent investment advice given based on the information supplied.

 

This document may not be used for the purpose of an offer or solicitation in any jurisdiction or in any circumstances in which such offer or solicitation is unlawful or not authorised.

 

Past performance is not a guide to future performance. The value of investments and the income from them is not guaranteed and can fall as well as rise due to stock market and currency movements. When you sell your investment you may get back less than you originally invested.

 

No warranty is given as to the accuracy or completeness of this information and no liability is accepted for errors or omissions in such information.  This document should not be published in hard copy, electronic form, via the web or in any other medium accessible to the public, unless authorised by BNY Mellon Asset Management International Limited to do so.

 

This document is issued in the UK and in mainland Europe (excluding Germany) by BNY Mellon Asset Management International Limited.  BNY Mellon Asset Management International Limited, 160 Queen Victoria Street, London EC4V 4LA. Registered in England No. 1118580. Authorised and regulated by the Financial Services Authority. ●If this document is used or distributed in Germany, it is issued by WestLB Mellon Asset Management Kapitalanlagegesellschaft mbH, which is regulated by the Bundesanstalt für Finanzdienstleistungsaufsicht. WestLB Mellon Asset Management was formed as a 50:50 joint venture between The Bank of New York Mellon Corporation and WestLB AG. If WestLB Mellon Asset Management Kapitalanlagegesellschaft (WMAM KAG) receives any rebates on the management fee of investment funds or other assets, WMAM KAG undertakes to fully remit such payment to the investor, or the Fund, as the case may be. If WMAM KAG performs services for an investment product of a third party, WMAM KAG will be compensated by the relevant company. Typical services are investment management or sales activities for funds established by a different investment management company. Normally, such compensation is calculated as a percentage of the management fee of the respective fund, calculated on the basis of such product’s fund volume managed or distributed by WMAM KAG. The amount of the management fee is published in the prospectus of the respective fund. Any compensation paid to the WMAM KAG does not increase the management fee of the relevant fund. A direct charge to the investor is prohibited. The information given herein constitutes information within the meaning of §31 sub-section 2 WpHG (German Securities Trading Act). ● In Singapore, this document is issued by The Bank of New York Mellon, Singapore Branch for presentation to professional investors. The Bank of New York Mellon, Singapore Branch, One Temasek Avenue, #02-01 Millenia Tower, Singapore 039192. Regulated by the Monetary Authority of Singapore. ● In Dubai, United Arab Emirates, this document is issued by the Dubai branch of The Bank of New York Mellon, which is regulated by the Dubai Financial Services Authority. ● If this document is used or distributed in Hong Kong, it is issued by BNY Mellon Asset Management Hong Kong Limited, whose business address is Level 14, Three Pacific Place, 1 Queen's Road East, Hong Kong. BNY Mellon Asset Management Hong Kong Limited is regulated by the Hong Kong Securities and Futures Commission and its registered office is at 6th floor, Alexandra House, 18 Chater Road, Central, Hong Kong.

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