Since launching its opportunistic investment platform in 2007, PIMCO has offered eight opportunistic/distressed strategies to clients seeking attractive risk-adjusted returns during a period of historic and ongoing dislocation in the global credit markets.
Recognizing the significant asset-level expertise required in this space, PIMCO has established a seasoned alternatives team of more than 100 individuals. We believe PIMCO’s opportunistic strategies are uniquely positioned to leverage the strength of PIMCO’s resources and personnel, including the firm’s extensive relationships with global financial institutions and other sellers of risk, and renowned macroeconomic and asset-level research.
In addition, we believe PIMCO’s opportunistic strategies provide access to top quality opportunities across the credit spectrum in a period of unprecedented change. Importantly, the vehicles utilized to implement these strategies are constructed to mirror the liquidity profile of the underlying investments.
PIMCO’s opportunistic/distressed strategies include:
Opportunistic strategies focused on taking an active role in the financial restructuring of over-leveraged companies by investing primarily in stressed and distressed corporate loans, bonds, claims and other related securities.
Senior Structured Credit:
The senior credit strategy is a directional strategy that targets senior structured credit assets. The strategy aims to provide investors the opportunity to earn carry and potential price appreciation for bearing liquidity and ratings risk with minimal expected long-term credit risk. The lead portfolio managers are Dan Ivascyn and Josh Anderson.
The tactical credit strategy is a directional strategy in a hybrid structure that primarily spans structured credit and corporate credit in both public and private markets. The strategy seeks to capture illiquidity and complexity premiums in orphaned or off-the-run credits. Through a combination of bottom-up fundamental analysis and macro expertise, the strategy targets investments that offer a robust return profile. In addition, by traversing public and private markets, the strategy identifies ways to potentially enhance returns either through the aggregation and securitization of assets or decomposition of structures. The lead portfolio managers are Dan Ivascyn, Josh Anderson and Alfred Murata.
Mortgage and Real Estate
Amidst the financial crisis, PIMCO expanded both its capabilities and offerings in direct mortgages, structured credit and real estate with the intent to capitalize on the evolving opportunity set, while emphasizing flexibility. A combination of bottom-up real estate underwriting with macroeconomic insights is used to determine optimal asset allocation. In addition, the strategies focused on uncovering embedded investment risks and value-add potential at the property level and incorporating a relative value framework that includes both public and private real estate data points.
PIMCO’s real estate team includes individuals with real estate private equity, structuring, servicing and origination expertise operating in both the U.S. and Europe. With private and public real estate markets more interconnected than ever, the team’s expertise in asset selection and structure provides a unique perspective to investing and creating value in real estate. Investments span originations, real estate equity, non-performing and re-performing loans, private debt and structured credit, underscoring the team’s flexibility.