Strategies

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STRATEGIES

Littlejohn’s investment platform is built on three integrated core strategies—private equity, special situations, and performing credit. Each strategy employs the same disciplined investment philosophy, and we seek to capitalize on the related synergies at all points in the economic cycle. This approach is particularly powerful in the middle market.
Private Equity

Littlejohn has Invested in the Middle Market for 21+ years

Littlejohn invests transformational capital in companies undergoing change. We partner with management to grow their businesses, improve operational performance, and build winning teams.

Littlejohn focuses on a limited number of opportunities and looks to develop a strong partnership with management to drive a step-change in growth, performance, and enterprise value. We consistently manage our investments with a long-term perspective, and we have a simple belief that the best tactical and strategic decisions will be made based upon what is right for a company based on this long-term view. Even though we expect our hold period to be four to five years, we operate and invest in our companies as if we will own the company forever.

Special Situations

Investing Across the Capital Structure with Restructuring Experience

Since 2005, our Special Situations team has targeted opportunities in the debt and equity of leveraged or financially distressed companies.

In this strategy, we invest across the capital structure in companies that are underperforming their potential. Our targeted investments are focused in the middle market and generally fall into three buckets:

  • Companies which have run into short term problems that have caused their securities to be mispriced, but are not likely to be restructured
  • Investments where we buy securities with the intent of leading a restructuring process to gain control or influence over the company
  • Structured solutions where we invest on a primary basis to solve a specific problem in the company’s capital structure. These investments are usually junior debt or preferred securities.

    • Our core strengths are detailed credit work combined with a thorough understanding of what is involved in taking a company through a restructuring. Additionally, we have strong relationships with intermediaries and advisors and access to our Private Equity team's experience in creating long term equity value.

    Performing Credit

    $2.5 billion+ AUM Manager
    Across the Broad Corporate Credit Market

    The Performing Credit strategy focuses on investing in non-investment grade corporate credit, primarily secured leveraged loans to large corporate borrowers. Investments are sourced in the broadly syndicated loan market, are diversified across industry sectors, and are predominantly to US-based companies. Investment portfolios are managed, principally in the form of collateralized loan vehicles, or CLOs, for institutional investors.

    The Performing Credit strategy seeks to generate current investment income and preserve invested capital through disciplined credit selection and active portfolio management. This strategy has a value-based, fundamental research approach that utilizes the firms’ deep industry, operational and valuation expertise. With a large and diversified portfolio, the strategy offers real-time insights into sector and company trends, providing early identification of investment opportunities for the firms’ other strategies, as well as general credit market intelligence.