Pericles Capital Advisors, LLC provides institutional clients, high net worth and family offices with unique investment opportunities in distressed and special situations asset classes.
We currently provide such potential investors with the ability and discretion on a deal-by-deal
basis. This relatively unique model potentially allows for more optimal fee structures and better discretion over investments as opposed to the
traditional blind-pool model.
We target investments across the entire capital structure, including senior and subordinated, secured and unsecured debt as well as equity, in both public and private large-cap and middle-market companies. We target the following investment characteristics:
Discounted assets nearing the bottom of their economic cycle - focus on sold-off securities in sectors that are anticipated to be close to the bottom of their economic cycle; leading to a large discount cushion
Ability to optimally position in the capital structure - seeking yield in senior secured positions or seeking higher returns in more junior tranches
Equity-like investments through debt instruments with potentially better liquidity at exit relative to private equity – investments in relatively more liquid publicly traded debt and equity securities that convert into new debt and equity securities (“loan-to-own strategies”)
Assets that are going through a transformation – either through capital structure de-levering and/or cost cutting including shedding of legacy liabilities through chapter 11; sectors on the cusp of volume or pricing power recovery
Chase pricing power - seeking assets and companies with recovering pricing power against the backdrop of the current global deflationary environment
REPRESENTATIVE PAST AND PRESENT PORTFOLIO INVESTMENTS
1. The investment objectives, strategies and guidelines summarized above represent Pericles’ current intentions. The strategies
employed and the capital allocated to each strategy may be changed at any time and in sometimes in the sole discretion of Pericles. Pericles continuously seeks to develop new strategies and
extend existing ones, and seeks to capitalize on inefficiently priced securities that offer investment opportunities. Depending on conditions and trends in securities markets and the economy
generally, Pericles may cause to employ other techniques and strategies it considers appropriate and in the best interests of the Fund. THE INVESTMENT PROGRAM IS SPECULATIVE AND ENTAILS
SUBSTANTIAL RISKS. MARKET RISKS ARE INHERENT IN ALL SECURITIES TO VARYING DEGREES. THE INVESTMENT PRACTICES THAT THE FUND INTENDS TO EMPLOY, CAN, IN CERTAIN CIRCUMSTANCES, INCREASE THE ADVERSE
IMPACT TO WHICH THE FUND’S INVESTMENT PORTFOLIO MAY BE SUBJECT. NO ASSURANCE CAN BE GIVEN THAT THE THE INVESTMENT OBJECTIVE WILL BE REALIZED.
2. Pericles may modify its investment approach set forth herein at any time in any manner which it believes is consistent with the Fund’s overall investment objective.
3. The examples included herein have been selected based on objective, non-performance based selection criteria, solely to provide general examples of the investment processes and style of Rebwar Berzinji, the CIO of Pericles. The examples should not be construed as an indicator of the future performance of the investments. The information presented herein should not be considered a recommendation to purchase or sell any particular security. There can be no assurance that any securities discussed herein will be a part of the investments and in the aggregate may represent only a small percentage of the future investments. There can also be no assurance that any security sold will be repurchased. It should not be assumed that the investment recommendations or decisions we make in the future will be profitable or will equal the investment performance of the securities discussed herein.
4. The parameters described on certain pages represent anticipated portfolio construction parameters and may be modified in the future by Pericles in response to changing market conditions in any manner it believes is consistent with the overall investment objective. No investment strategy or risk management technique can guarantee return or eliminate risk in any market environment.
5. In some past portfolio examples, the investments were made when Pericles employees were employed by other prior companies and not executed at Pericles.