CIFC Corp., based in New York, is one of the largest specialized asset managers of senior secured corporate loans in the world. CIFC combines what it believes are the best underwriting, portfolio management and value maximization practices to generate attractive and consistent returns for investors. CIFC's heritage CIFC CLO Fund Family* has market leading performance in the U.S. managed CLO segment. The firm had $12.4 billion in AUM from corporate loan based products as of March 31, 2013 and serves more than 200 institutional investors in North America, Europe, Asia and Australia.
Unique Investment Model:
CIFC is a proactive, fundamentals-based manager of senior secured corporate loans with a highly differentiated investment management model, management framework, processes and proprietary technology. CIFC combines the best investment practices of top-tier banks and asset managers. A focus on loan repayment by borrowers, in contrast to dependency on asset sales as a primary risk management tool, is integrated with disciplined portfolio diversification, an adherence to strict risk/return criteria and an overlay of market value arbitrage to enhance the risk profile of funds managed.
CIFC makes investment decisions under the assumption that an asset will be held to maturity, with emphasis on each loan's repayment prospects or collectability in the event of default. To that end, CIFC seeks loans with robust recovery values supported by a cushion comprised of collateral and enterprise value. Rather than relying on the views of rating agencies or implied signals from market prices, CIFC's investment analysis focuses on industry, the borrower's business, management capabilities, debt service capacity, legal structure, collateral value and use of proceeds.
CIFC's fundamentals-based investing strategy incorporates an overlay of relative value loan trading and portfolio rebalancing in a continual, disciplined reassessment of every loan in the portfolios that it manages. In so doing, CIFC seeks to identify relative value differentials, loan market inefficiencies and technical imbalances in order to arbitrage differences between expected recovery rates and market prices, to build loan loss reserves, and to take defensive actions. Guided by its continuously updated credit views, CIFC sells loans when more attractive loans can be purchased at comparable price points to optimize portfolio composition and target performance.
In addition, CIFC employs a workout approach to stressed loans with a focus on ultimate recovery (soon-to-default or actual default sales are exceptions and undertaken only where price exceeds expected recovery). Within its diligent, detail-oriented fund management process, CIFC also prioritizes concentration and correlation avoidance and re-assesses investments relative to the target investment criteria of each fund. Ultimately, CIFC is focused on the preservation of capital invested, and seeks to deliver consistently attractive risk adjusted returns according to the original outlined investment strategy and to maintain high transparency and accountability with its investors.
Strong, Scalable Investment Platform:
CIFC has over 60 employees, built around a core of highly experienced credit and lending professionals. CIFC's investment team has 27 professionals -- many of whom worked together at JPMorgan Chase (and its predecessors Chase Manhattan Bank and Chemical Bank) -- who have extensive experience in lending and credit, including loan syndication, credit portfolio management and loan workout expertise.
CIFC's loan management business is supported by a sophisticated IT infrastructure comprised of both third party and proprietary systems. This IT platform is designed to support informed, timely and refined investment decisions, increase efficiency and produce uniform and consistent loan and fund performance tracking metrics.
Note: Unless the context otherwise indicates, "CIFC" represents CIFC Corp. and its consolidated subsidiaries.
* Comprises the seven CLOs totaling $3.6 billion originated by Commercial Industrial Finance Corp., the predecessor to CIFC Asset Management LLC, between 2006 and 2007.