The ongoing global economic contraction is expected to lead to an increase in the number of liquidations and further strain fundamental credit valuations. Identifying a fulcrum security is challenging without an understanding of the bankruptcy process and deep relationships with financial and legal restructuring advisors. Most portfolio managers and commercial lenders with large exposure to leveraged loans and bonds lack expertise in managing distressed situations and as a result, may face substantial losses. They lack financial resources to hire full-time distressed professionals to serve on creditors’ committees, participate in workouts, and most importantly, provide efficient and unbiased recommendations on what to do with distressed securities in portfolios. We offer outsourced credit research and portfolio valuation to money managers.
Convergence Capital Partners provides comprehensive research and analysis services to institutional investors and commercial lenders, including, but not limited to, the following:
Unbiased, on-site customized credit research that incorporates detailed analysis of potential bankruptcy or restructuring scenarios;
Independent portfolio valuation for commercial lenders and investment managers. We estimate default probabilities of individual holdings and whole portfolios for up to a 5-year period. Additionally, we help money managers to evaluate their potential cash losses. We believe, third-party portfolio valuation is becoming increasingly important for virtually all money managers;
Outsourcing management of distressed portions of portfolios based on customer’s investment horizon and benchmarks; and
In-depth valuation analysis of potential acquisition targets.
We add value drilling down into industry drivers, dissecting financial statements, and approaching various levels of management. Our approach is based on fundamental analysis of sales and cost structures. We provide detailed analysis of indentures’ and credit agreements’ covenants and develop probability-adjusted financial models incorporating different scenario. We have no interest in the outcome and unlike other investment banks, are not driven by transaction fees. As a trusted adviser, we place our clients’ interests first and foremost and help them navigate through the challenging bankruptcy or/and valuation process for a fraction of the cost typically charged by other restructuring professionals.