Unique Model

CIFC’s investment model is structured around:

  • High quality initial portfolio selection
  • Continuous portfolio re-underwriting and relative value repositioning to constantly manage risk
  • Recovery maximization for stressed and distressed credits

Loans are analyzed based on borrower’s ability to repay the loan in full from free cash flow and/or from the value of the collateral securing the loan.

The Investment Team, which is responsible for both the initial credit underwriting and ongoing monitoring, is organized around a group of highly experienced senior analysts responsible for specific industry segments. 

Each new underwriting opportunity is first screened by the firm’s Investment Committee, which helps shape the due diligence and analytical framework the analyst pursues in completing the underwriting process. 

Problem loans are analyzed from the perspective of determining our view of ultimate recovery, which is expressed in the form of current loan valuation. This is compared to the current market price for the loan, and a decision is made with respect to selling or holding and regularly re-evaluating. 

CIFC employs a dedicated workout specialist and has many additional individuals within the firm with extensive workout experience, providing CIFC with the ability to maximize recovery value across all problem loan situations.