Investment Strategy

We believe attractive risk-adjusted returns can be generated in senior and senior secured debt of distressed companies using the following selection criteria:

  • Target less liquid middle-market transactions
  • Buy debt of what we believe to be good companies with bad balance sheets; sound assets that are overlevered
  • Companies typically backed by tangible assets such as power stations, manufacturing facilities and real estate
  • Buying senior and senior secured debt backed by hard assets to limit downside risk
  • Avoid asset-light companies such as high tech and service companies
  • Neuberger Berman’s proprietary research platform is important to our identifying debt issues of private companies