INVESTMENT PHILOSOPHY

Capital Preservation

SCP’s value-oriented investment philosophy focuses primarily on preserving capital and ensuring that our investments have an appropriate expected return profile in relation to risk. Our underwriting discipline is guided by a presumption that we are always investing as if we are late in the economic cycle and driven by a rigorous analysis of a borrower’s ability to repay a loan across a range of downside scenarios.

 

Invest as Principals

Since the inception of SCP in 2006, the hallmark of our culture and philosophy is the alignment of SCP’s interests though investing as principals alongside our investors. Over $80 million has been invested or committed by our investment professionals, including owning 5.8% and 5.4% of SLRC and SUNS, respectively, the listed BDCs managed by SCP that co-invest with our private funds and SMAs.

 

Private Equity Approach to Credit Investing

Our investment team has extensive experience working in private equity. As credit investors in this same asset class, we conduct “deep-dive” due diligence, usually alongside the financial sponsor. During this process, SCP draws upon its senior investment professionals’ deep investment experience, industry expertise, and network of contacts.

 

Niche Market Opportunities

Outside of traditional cash flow lending, SCP seeks to identify market opportunities created by regulatory and policy changes and shifting market structures. The asset classes we choose to enter typically are characterized by significant barriers to entry, lender-friendly investment structures, and compelling risk-adjusted return profiles, and have seasoned management teams with long track records and highly specialized skills.