Thames Capital

Investment Strategy

Private Credit: Direct Lending with Flexible Structuring

Strategy Overview

Thames Capital's Private Credit strategy deploys capital across corporate, real estate and structured finance markets via our Credit Opportunities Fund. We focus on direct lending opportunities where flexible structuring, active management, and disciplined underwriting can generate attractive risk-adjusted returns. Our approach combines deep market expertise with execution excellence to identify and manage investments aligned with our core competencies.

We target opportunities across the capital structure, from senior secured lending to subordinated facilities and structured solutions, with a focus on borrowers and sponsors where our structuring expertise and market relationships add meaningful value. The fund is open ended and targets an annual return of IRR 10-12% with quarterly cash distributions.

Investment Mandate

We deploy capital across three core lending verticals within the fund:

Corporate Lending

Direct lending to mid-market corporates, including acquisition financing, working capital facilities, and growth capital solutions. We focus on businesses with strong cash flows, experienced management, and clear value creation opportunities.

Real Estate Lending

Development and stabilized asset lending across residential, commercial, and industrial properties. We work with experienced sponsors, providing flexible structuring tailored to project-specific requirements. We do not currently lend to real estate development projects.

Structured Finance

Asset-backed lending, cash flow securitizations, and specialty finance solutions for unique assets and borrower situations. We leverage our structuring expertise to create bespoke solutions for complex opportunities.

Opportunity Set

We identify lending opportunities across several key themes:

Sponsor-Backed Opportunities

Financing for private equity portfolio companies, growth equity platforms, and sponsor-led acquisitions where our relationships and structuring expertise create competitive advantage.

Mid-Market Corporates

Direct lending to established mid-market businesses seeking flexible capital solutions outside traditional banking channels.

Real Estate Platforms

Stabilised lending to experienced real estate sponsors with strong track records and local market expertise.

Specialty Situations

Complex or bespoke lending opportunities where traditional lenders are unwilling or unable to provide capital, and our structuring expertise adds value.

Our Structuring Edge

Thames Capital's competitive advantage in private credit stems from our deep structuring expertise and flexible approach to capital deployment:

  • 1

    Flexible Structuring

    We design bespoke capital structures tailored to specific borrower situations, including hybrid instruments, performance-based pricing, and customized covenants.

  • 2

    Active Management

    We maintain close engagement with borrowers throughout the loan lifecycle, providing strategic support and actively managing portfolio risks.

  • 3

    Market Relationships

    Strong relationships with sponsors, corporates, and financial advisors provide consistent deal flow and competitive advantage in sourcing opportunities.

  • 4

    Risk Discipline

    Rigorous underwriting, stress testing, and portfolio monitoring ensure disciplined risk management across all investments.

Risk Management Approach

We maintain strict risk management disciplines across the private credit portfolio:

  • •Diversification: Portfolio diversified across borrowers, industries, and geographies to mitigate concentration risk.
  • •Underwriting Standards: Rigorous underwriting including financial analysis, market assessment, and management evaluation.
  • •Covenant Packages: Robust financial and operational covenants with appropriate flexibility for borrower operations.
  • •Ongoing Monitoring: Regular portfolio monitoring, financial reporting, and proactive engagement with borrowers.

Interested in Our Private Credit Strategy?

We welcome conversations with potential investors and co-investors interested in private credit opportunities.

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