Spring Mountain Capital, LP (SMC), an investment management firm that focuses on alternative asset investing, has established a High Yield and Distressed Municipal Strategies Group.
The firm has also hired high yield and distressed municipal bonds specialists Garey M Fuqua, Thomas J Brophy and Sandra T Matthews to lead its investments in this asset class. Fuqua will lead the team and serve as Managing Director and Group Head of High Yield and Distressed Municipal Strategies.
Driven by an investment philosophy focused on a dynamic and opportunistic investment thesis and approach, the creation of the High Yield and Distressed Municipal Strategies Group and addition of the new team will expand and strengthen SMC’s expertise and further enhance the firm’s investment line-up. The newly-formed High Yield and Distressed Municipal Strategies Group also strongly complements SMC’s existing investment business lines including: funds of funds, hedge funds, private equity, actively managed private vehicles, and existing investment grade municipal bond investments managed through its affiliate, SMC Fixed Income Management, LP (SMC FIM).
“We have always been on the forefront of investment innovation by frequently challenging conventional wisdom, and we believe that high yield and distressed municipal bonds currently provide an interesting investment opportunity. Traditional holders of municipal bonds historically do not desire or are prohibited from owning these securities once they become unrated or distressed assets and often sell them for non-economic reasons. The inefficient market and downside protection provided by the real assets used as collateral make high yield and distressed municipals especially compelling today,” says Launny Steffens (pictured), Founder of SMC and Co-Managing Member of its general partner.
The new team members of Fuqua, Brophy and Matthews have combined experience of more than 45 years with specialty areas in healthcare and education. They join from Ofelia Capital, an investment boutique firm founded by Fuqua, focusing on high yield municipal strategies, and have previously worked together and separately in buy-side firms, rating agencies, a bond insurer and a consulting firm as portfolio managers, traders, credit analysts and turnaround specialists with a deep understanding of financial and operational components of nonprofit organisations.
“We are very pleased to welcome Garey and his team to Spring Mountain Capital. By leveraging resources in addition to investment and credit expertise, we are making available a broad range of creative high yield tax-exempt products. The addition of Garey as group head, Tom as portfolio manager and Sandy as director of research and credit will not only complement our existing business but will further enhance our presence and offerings as a premier alternative asset management firm,” says Steffens.
“We have been impressed with Launny Steffens’ leadership and believe that joining his team at SMC is a natural way for us to utilise our experience and relationships in the municipal marketplace and bring more sophisticated high yield and distressed tax-exempt products to a greater number of clients. Tom, Sandy and I look forward to building the high yield and distressed municipal bonds platform at SMC,” says Fuqua.