ARCOS Capital Investment strategies

ARCOS Capital invests primarily in senior secured floating rate loans of stable mid-sized companies in Europe.

ARCOS Capital provides long-term and flexible financing to performing borrowers that generate sustainable free cash flow and have experienced management teams who seek capital to grow or are being acquired or refinanced by a private equity owner.

Carefully selected floating rate senior secured loans provides investors with interest rate protection and a stable interest income with high capital preservation.

ARCOS Capital applies a strict credit selection process that has been used for more than 20 years and encompasses a thorough due diligence, structuring and arranging of the optimal debt structure for the company in question.

About ARCOS Capital

EXPERIENCE THROUGH CYCLES

  • Team with 200+ years experience in the European Sub-investment Grade Loan market and Private Equity market
  • The team has extensive transaction and restructuring experience from several troughs in the credit cycle
  • ARCOS is uniquely placed to generate attractive risk adjusted through-cycle returns in the European mid-cap market

FOCUS ON EUROPEAN MID-CAP MARKET

  • Attractive and growing market that is under-serviced by banks due to new bank regulations
  • The European mid-cap market is going through a structural shift and is experiencing a funding gap driven by new bank regulations

PRUDENT CREDIT SELECTION

  • The ARCOS team has a 150+ years strong track record in selecting right credits throughout the credit cycle
  • Prudent credit selection preserves capital in the down-turn of the credit cycle

SOURCING

  • Unique access to supply of sub-investment grade loans through extensive network of contacts with Private Equity firms, lending banks and advisors​
  • Track record as a trusted long-term lender through several credit cycles ensures unique access to the European mid-cap market​

INDEPENDENT DEBT PROVIDER

  • Independence from Private Equity Firms and Banks ensures strong alignment of interest with investors​
  • Independence from Private Equity Firms also ensures no conflict of interest with owners of borrowers and provides greater access to transactions​

THOROUGH DUE DILIGENCE

  • Conservative investment strategy with due-diligence heavy approach to investment selection​
  • ARCOS applies an in-depth analysis of each company with thorough due diligence and financial modelling​