Not a Category; a Concept: Opportunistic credit as an investment category lacks definition—each manager interprets it differently. We take a credit-first perspective, where success hinges on longstanding relationships across the credit ecosystem, unrivaled structuring expertise and an information advantage across public and private credit.
Beyond Distress: Periods of true distress are rare, transitory and hard to time; opportunistic credit deal flow occurs continuously up and down the capital stack and across a vast array of credit market participants, driven by ongoing liquidity mismatches, mispriced credits, regulatory pressures and market swings.
A Completion Strategy: Opportunistic credit occupies a hybrid or in-between space between traditional buyout and senior-oriented private direct lending; allocating across preferreds and warrants to various forms of junior debt, it blends debt-like control rights with equity-like upside participation to help complete a private market allocation.
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