The "special situations" strategy driving alpha for Keyview

Note: the interview was filmed on 6 June, 2024. You can watch the video or read an edited transcript below.
As private credit funds proliferate in Australia, one firm has carved out a niche by focusing on "opportunistic and special situations deals" in the mid-market space.
Miki Cvijetic, Investment Director at Keyview Financial Group, explains the differentiated approach:
"When we say opportunistic, what we mean by that is we typically look to do things that the market isn't doing.
Sectors of the market where there's lots of capital, are often going to be situations where the lender has to accept terms that are set, and that means worse protections and lower returns because there's more competition from lenders to lend money to that counterparty", says Cvijetic.
He adds that the spaces where there is less capital fighting for the ideal often overlap with greater complexity - but that's also where there is greater opportunity for those willing to do the work.
"We're not trying to fish in overfished ponds, we're trying to find the pockets where we can get the best returns for our investors, but get the best protections".
Cvijetic cites three key factors that set Keyview apart: an experienced team from "complex special situations-type credit backgrounds", a flexible mandate to invest across industries and capital structures, and an alignment of incentives where the team co-invests alongside clients.
In the following episode of The PItch, Cvijetic explains why opportunistic private credit returns have generally outpaced regular private credit, and then hones in on exactly the type of opportunities the team has been pursuing lately.

[@annaahadizadeh488]

Great interview