Key Takeaways
- • Alcentra has grown from $2 billion in assets under management at its 2003 founding to $26.8 billion across 70 funds, with 131 staff spread across London, New York, Boston, and Düsseldorf, plus representative offices in Asia—achieving tier-one global sub-investment grade credit manager status organically over 15 years.
- • Credit alternatives strategies—including structured credit, direct lending, distressed debt, and multi-strategy credit—have become the primary growth driver, with CLO assets declining from 85% of the portfolio three years prior to below 45% as of the 2018 reporting period.
- • Founder, Chairman, and CEO David Forbes-Nixon expects credit alternatives to remain fundamental growth areas over the next 5–10 years as institutional investors reassess asset allocation across the capital structure.
- • The firm's 64 credit investment professionals represent 12 nationalities and are evenly distributed between US and European offices, positioning Alcentra as the only top-tier global credit manager headquartered in Europe.
- • Growth has been almost entirely organic, with the 2013 acquisition of Standish's high-yield business from Chris Barris being the sole material M&A transaction to date.
Summary
Alcentra has established itself as one of the largest non-bank lenders to European corporates and a distinctive position as the sole top-tier global credit manager headquartered in Europe. Founded by David Forbes-Nixon in 2003 following a spinout from Barclays Capital Asset Management (which Forbes-Nixon established in 2000), the firm has achieved a 15-year track record of organic expansion backed by private equity firm Alchemy Partners.
The scale of Alcentra's growth is substantial. Starting with $2 billion in assets under management concentrated primarily in four collateralized loan obligations (CLOs) and a staff of 20, the firm has expanded to $26.8 billion in AUM across 70 funds with a workforce of 131 professionals. This expansion reflects a strategic shift in asset composition: CLO assets, which represented 85% of the portfolio three years prior, have declined to below 45% of total assets, rebalancing the firm's portfolio toward credit alternatives.
Forbes-Nixon has explicitly articulated his vision as creating "a tier one global sub-investment grade credit manager which can deliver solutions to clients across the capital structure"—an objective the firm has now achieved. Credit alternatives strategies, encompassing structured credit, direct lending, distressed debt, and multi-strategy credit, have emerged as the highest-growth segments. The CEO expects these areas to remain fundamental growth drivers over the next 5–10 years as institutional investors reassess their capital structure exposure and asset allocation strategies in response to evolving market conditions.
The firm maintains a truly global footprint with 64 credit investment professionals representing 12 nationalities distributed evenly between the United States and Europe. Offices in London, New York, Boston, and Düsseldorf are complemented by representative offices in Singapore and Hong Kong, reflecting both the breadth of client relationships and the geographic distribution of sub-investment grade credit opportunities. Growth has been achieved through organic expansion rather than aggressive acquisition strategy, with the 2013 acquisition of Chris Barris's top-quartile high-yield business from Standish representing the primary exception to this organic growth model.
The scale of Alcentra's growth is substantial. Starting with $2 billion in assets under management concentrated primarily in four collateralized loan obligations (CLOs) and a staff of 20, the firm has expanded to $26.8 billion in AUM across 70 funds with a workforce of 131 professionals. This expansion reflects a strategic shift in asset composition: CLO assets, which represented 85% of the portfolio three years prior, have declined to below 45% of total assets, rebalancing the firm's portfolio toward credit alternatives.
Forbes-Nixon has explicitly articulated his vision as creating "a tier one global sub-investment grade credit manager which can deliver solutions to clients across the capital structure"—an objective the firm has now achieved. Credit alternatives strategies, encompassing structured credit, direct lending, distressed debt, and multi-strategy credit, have emerged as the highest-growth segments. The CEO expects these areas to remain fundamental growth drivers over the next 5–10 years as institutional investors reassess their capital structure exposure and asset allocation strategies in response to evolving market conditions.
The firm maintains a truly global footprint with 64 credit investment professionals representing 12 nationalities distributed evenly between the United States and Europe. Offices in London, New York, Boston, and Düsseldorf are complemented by representative offices in Singapore and Hong Kong, reflecting both the breadth of client relationships and the geographic distribution of sub-investment grade credit opportunities. Growth has been achieved through organic expansion rather than aggressive acquisition strategy, with the 2013 acquisition of Chris Barris's top-quartile high-yield business from Standish representing the primary exception to this organic growth model.
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