Alternative Investment Awards 2016

awards alternative investment wealth & finance2016 44 c apital Company: Brevet Capital Management, LLC Websites: Address: 230 Park Avenue, Suite 1525, New York, NY 10169 Phone: +1 212-313-5100 AI16041 b revet Brevet Capital Management, LLC (“Brevet”) is an alternative asset manager based in New York City. Douglas Monticciolo, Brevet’s Chief Investment Officer, talks us through the firm and its investment strategy. About Founded in 1998, Brevet Capital is an alternative asset manager based in New York that focuses on providing senior secured loans to high- growth, asset-rich middle market companies that are typically family or founder owned. Originally founded as an advisory firm, Brevet and its affiliates have advised, structured, or executed over $10 billion of client transactions in senior secured lending and structured finance since its inception. The Brevet Direct Lending - Short Duration Fund, L.P. (“Short Duration Fund”) has a strong six-year track record of providing senior secured loans to private companies against realizable collateral. Brevet’s Short Duration Fund returned 12.12% in 2015 and 11.74% in 2014, net of fees and expenses without the use of leverage, and is the winner of Wealth & Finance’s Best Alternative Lending Fund for 2016. Brevet’s seasoned team of principal finance professionals help its borrowers unlock hidden asset value and generate revenue growth. The firm believes that these loans will be attractive to investors who are seeking high-yielding assets with the downside protection of senior secured, collateralized loans, and a low correlation to the broader equity or fixed income markets. Opportunity Since the global financial crisis, increased regulatory oversight has caused many banks to withdraw from lending to middle market compa- nies. The retreat of traditional capital sources created an unprecedented opportunity for alternative lenders to provide growth financing to middle and lower market companies. According to the National Center for the Middle Market, the United States’ middle market represents the fifth largest global economy and more than $10 trillion in annual revenue. Brevet feels that it has an established platform of financing solutions to serve this broad market segment, creating value for its borrowers and generating compelling risk-adjusted returns for its investors. Strategy Brevet’s seeks to achieve superior returns through inefficiencies in segments of the middle and lower market that are underserved due to perceived complexity or lack access to financing. In general, Brevet does not engage in “cash flow lending” but rather lends against high quality collateral, such as Federal and State government receivables, tax credits, and other government-backed obligations. As such, Brevet generally does not take credit risk, per se, but invests in assets in which the targeted risk exposure is the timing to repayment. In order to protect its principal while retaining the potential for upside participation, Brevet will take senior or structurally senior positions that are collateralized through structured financings, alternative investment structures, or direct acquisition of assets. These provisions include, but are not limited to, bankruptcy remote vehicles, asset level overcollateralization (low LTV), originator co-investment, and/or first loss protection. Brevet struc- tures its loans to be held to maturity with multiple forms of repayment and little reliance on capital markets events for refinancing. Unlike most of its competitors, Brevet directly sources, underwrites, and structures its own loans on an exclusive basis - a robust process that underpins our ability to generate above-market returns for our investors. Outlook & Conclusion Brevet is growing rapidly, and is attracting strong interest from wealth management firms, family offices, foundations, endowments, pensions, insurance companies and other institutional investors. Looking ahead, Brevet is enthusiastic about the opportunities that we expect to come to fruition over the rest of 2016. The firm has added to its staff in nearly every line of business with the anticipation of adding significantly to its AUM and deploying capital efficiently. Later in the year, Brevet will be launching the Brevet Direct Lending - Intermediate Duration Fund, L.P. (the “Intermediate Duration Fund”) which represents an extension of the Short Duration Fund’s success. The Intermediate Duration Fund will utilize the same strategy, team, and investment process but in a closed end structure (five-year term, three- year commitment period.) The Fund will target loan maturities of two to four years, and have the potential to generate additional enhanced returns due to both its liquidity premium and its expanded scope for profit-sharing and other forms of upside participation. Brevet believes its Intermediate Duration Fund will address borrower demand for longer term capital, and will represent an attractive asset for investors with longer-term liabilities. Best Mid-Market Private Debt Manager - USA (Brevet Capital Management, LLC) & Best Alternative Lending Fund (Brevet Direct Lending – Short Duration Fund, L.P.)