Through its credit opportunities strategy, TCP directly originates complex financings in companies undergoing change. We also take distressed and control or deep value credit positions in the open market. We invest in all phases of the default cycle, including deeply discounted securities and commercial loans in the secondary market, or direct capital infusions into both healthy and troubled U.S. middle market companies. We strive to be a value-added capital partner. Our ability to operate, improve and exit businesses undergoing restructurings is one of our greatest competitive advantages. Our credit opportunities strategy targets the combination of current income plus higher net asset value over the life of the investment.

Debtor-in-possession (DIP) financing provides companies with the liquidity they need to fund operations during Chapter 11 reorganization and to successfully emerge from bankruptcy. DIP lending has been viewed historically as relatively low risk due to the special super-priority status granted to DIP lenders under the U.S. Bankruptcy Code. TCP harnesses extensive relationships with key constituents in the bankruptcy process for deal flow and evaluates individual DIP transactions using the firm’s unique restructuring expertise.

TCP’s hedged strategies focus on opportunities in liquid securities with low correlation to the broad equity and credit markets. We exploit credit, equity as well as event-driven views throughout the capital structure and have a deliberate, collaborative and thorough investment process based upon rigorous, fundamental analysis. Our team aims to exploit identifiable credit, equity and/or volatility catalysts that can serve to unlock value. Capital is allocated across our various strategies and individual positions based on the asymmetry in upside/downside scenario analyses and pro forma impact on the existing portfolio.