The team’s core strategy is to pursue privately negotiated debt investments in energy and power projects and companies. Oil Armco augments its core strategy by seeking investments in dislocated secondary debt markets. The group’s debt investment strategy can take on many forms including senior secured debt, second lien debt, senior subordinated debt, senior holding company debt, convertible debt and preferred stock.
Consistent with Oil Armco's value-based investment philosophy, has a credit-based investment process with a focus on capital preservation and downside protection. In order to achieve this objective, the team targets investments with the following characteristics: (i) collateralization by hard assets, (ii) appropriate range of leverage profiles (iii) current cash yield, (iv) proven technology, (v) mitigated financial, commodity, and construction risks (if applicable).
Key elements of Energy Credit investment approach are as follows:
The Energy Credit team invests primarily in mezzanine debt in energy and power projects and companies in the U.S. and Globally. Oil Armco offers distinct competitive advantages as a result of its sector and product focus, coupled with the investment team’s relationships, industry expertise, knowledge of specialized credit structures and privileged access to investment opportunities due to an extensive deal-sourcing network.