#London #United Kingdom #private credit #Moody Aldrich #SCIO Capital

Major Investment Announcement

In a significant development for the asset-based lending market, Moody Aldrich Partners (MAP), a prestigious private investment firm based in Boston, has announced a capital commitment of $600 million to SCIO Capital LLP, located in London. This investment aims to bolster SCIO's capabilities as a leading European asset-based private credit manager.

About SCIO Capital LLP

Founded in 2009 by a team of seasoned professionals from Deutsche Bank, SCIO Capital has made a name for itself by managing both open and closed-end funds from its Luxembourg-based fund platform. Among its offerings, the flagship SCIO Opportunity Fund, launched in 2016, allows investors to gain access to European asset-based private credit in an evergreen format.

Greg Branch, the founder and CIO of SCIO, emphasizes the firm’s commitment to its core investment principles, stating, “Having worked with the same investment team here at SCIO for over a decade, we have a deep loyalty to each other and to the core investment principles upon which SCIO was built.” He adds that focusing on downside protection is paramount, as it rewards the firm’s dedication to compounding investors’ capital.

Moody Aldrich Partners: A Legacy of Investment Wisdom

Moody Aldrich Partners, established in 1988, serves as a fiduciary for families and institutions, boasting a legacy of supporting discriminating managers renowned for their expertise. With a steep focus on high-caliber, specialist managers, MAP’s investment approach remains highly selective. Co-CEO and CIO Eli Kent highlights SCIO's differentiating factors in the crowded market, pointing out their “deep understanding of valuation, underwriting, and tight collateralization structuring.” He believes these elements reinforce their confidence in SCIO’s management of invested capital.

A Strong Partnership

The collaborative ethos between MAP and SCIO is underscored by Bill Moody, Executive Chairman and Co-CEO of MAP. He regards SCIO’s asset-backed private credit strategy as “opportunistic,” praising their skill in portfolio construction and risk mitigation. He notes that this innovative approach not only appeals to MAP but also assures the firm of its investment security.

What Lies Ahead

This capital commitment from MAP is set to enhance SCIO's operational framework as it continues to cater to lower middle-market borrowers in Europe. With a steadfast commitment to capital preservation, SCIO aims to generate attractive risk-adjusted returns. In a financial landscape continually challenged by market fluctuations, the partnership stands as a robust framework for both firms moving forward.

As Moody Aldrich Partners and SCIO Capital LLP embark on this journey, their collaborative efforts will likely reshape the narrative surrounding private credit investments. With an understanding of market dynamics and a dedication to serving their investor base, both firms look set to make significant strides in their respective fields.

In conclusion, the investment from MAP not only funds SCIO’s growth but also reflects a shared vision of navigating the complexities of capital markets with a strategic edge. As they move forward, stakeholders eagerly anticipate the outcomes of this high-stakes alliance.