Every year, thousands of companies raise hundreds of billions for finance using leverage. At a time when interest rates are very low, borrowers pay a premium to attract debt capital. Outside of recessions, these loans have very low default rates.
Newport Beach, CA (PRWEB) February 20, 2013
Southland Capital Chief Investment Officer, Nicholas Marshi, headlined the Ivy Family Office Network Newport Beach, CA Forum with a discussion on “Finding Yield in a ZIRP Environment” The Forum was held on February 7th in Newport Beach, CA.
According to Mr. Marshi, “Every year, thousands of companies in America raise hundreds of billions of dollars of debt to finance buy-outs, recapitalizations or to refinance existing obligations, typically by issuing bonds or by taking on loans. At a time when interest rates are very low, borrowers pay a premium to attract debt capital. Outside of recessionary periods, these loans have very low default rates, pay interest regularly and rank in priority above the Private Equity groups, which typically provide the equity capital for the underlying transactions.”
Moreover, “in recent years, a number of publicly traded vehicles have been launched which provide broad and diversified access to all types of borrowers from the very largest corporations to the lower middle market. We believe there is an exceptional opportunity for investors to achieve above-average returns from investing in a carefully selected portfolio of leveraged finance debt, with the added benefits of liquidity and transparency from investing in publicly traded and regulated instruments.”
Other panel participants included: Gregory Peeke of Skrimshaw Investment Management,
Craig Reed of Steel Castle Property Partners and John Lustgarten of Snowmass Capital.
Nicholas Marshi is the Chief Investment Officer of Southland Capital Management (SCM). The Company is a Registered Investment Adviser ("RIA") in Santa Monica, California. SCM's principal expertise is in the area of publicly traded leveraged finance to U.S. private companies, including the Business Development Company industry ("BDC"), high yield bonds and floating rate loans.
SCM manages two "hedge funds" devoted to equity investments in BDCs and other specialty finance lenders. The Company's first fund-BDC II-was launched in October 2009, and a second fund-BDC III- in January 2011. Moreover, SCM provide portfolio management for separately managed accounts for high net worth individuals and institutional clients.
Prior to forming Southland Capital Management with Mr Hansen, Mr. Marshi managed two private equity firms: Kensington Capital Corporation ("KCC") and Southland Capital Partners "SCP"). Starting in 1990 and 1995 respectively , both firms were active in acquiring lower middle market private companies, principally in Southern California, in leveraged buy-out transactions.
Before founding KCC, Mr Marshi was the head of the Los Angeles office of Kleinwort Benson Limited, a British merchant bank, from 1987-1990. Mr Marshi was involved in leading investment banking, lending and principal investing activities (both directly in middle market companies and in funds managed by Kleinwort Benson and other institutions). Prior to joining Kleinwort Benson, Mr Marshi held various positions with Citibank at locations worldwide including Athens, Dubai, Puerto Rico and London.
Mr Marshi is a graduate of Tufts University (B.A.) and Harvard University (M.A.).
The Ivy Family Office Network Forum is part of an ongoing dialogue with family offices to provide high-value education and information on trends for family office investing, structure and operational excellence. Attendees gain practical strategies and solutions to achieve both short and long-term objectives. The program features off-the-record, peer-to-peer discussions in a non-commercial setting, in-depth and highly interactive sessions.
About The Ivy Family Office Network
The Ivy Family Office Network, IvyFON, is a leading peer to peer global family office network with several hundred family offices attending their events around The Americas within the past 12 months. Some of the more than 1,000 past speakers have included 5 of the top 10 largest asset allocating consultancies, pre-eminent alternative investment funds by return, leading institutional investors by size, best-in-class asset management professionals, family office subject matter experts and world-class family offices. Forum sessions are multi-format and cross-disciplinary covering a range of family office centric topics.
IvyFON’s expertise is an outgrowth of one of the United States’ oldest and largest alternative investment networks, the IvyPlus network. IvyPlus began as a peer to peer private equity, real estate and hedge fund network consisting of Ivy League alumni and other participants who attended more than 50 globally comparable programs or through merit are worthy participants in the program. Additionally the IvyPlus/IvyFON networks support deal networks across multiple disciplines including private equity, venture capital and real estate. More than 10,000 investment, family office and institutional investment professionals have attended IvyPlus forums globally. For more information on the Ivy Family Office Network, go to ivyfon.com/contact.html.
For more information on Southland Capital contact Bill Hansen at bhansen(at)southlandcapitalmanagement(dot)com