Our Approach | Octane Capital

We focus on underinvested credit opportunities in Western Europe, leveraging over 50 years of regional investing expertise and local relationships

Our Strategy

Non-Performing Loan Portfolios

Non-Performing Loans (NPLs) are loans where borrowers have defaulted or are unlikely to meet repayment obligations. They are typically acquired at a significant discount to par and are predominantly senior secured, often backed by real estate or other tangible collateral
NPLs offer equity-like returns with downside protection, benefiting from pricing inefficiencies, motivated sellers (primarily banks), and low correlation to traditional asset classes across economic cycles
Investments can typically be made at 40–60% discounts to par, providing a strong margin of safety. Returns are driven by active workout, refinancing, or asset realization, with hard collateral and seniority underpinning downside protection and attractive risk-adjusted returns

Insolvency Claims Portfolios

Insolvency claims represent creditor positions in companies undergoing formal insolvency proceedings. Portfolios typically consist of legally enforceable claims against insolvency estates, often backed by cash balances, asset sale proceeds, or litigation recoveries
Insolvency claims provide access to highly discounted, non-correlated opportunities driven by legal processes rather than market sentiment, offering attractive returns with limited exposure to interest rate or valuation volatility
Claims are typically acquired at deep discounts (often 90–95% to par), with downside protection supported by cash held in insolvency estates and priority ranking. Active legal oversight and accelerated distributions drive strong risk-adjusted returns and early cash flows

Special Situations

Special Situations investments focus on dislocated credit instruments such as secondary corporate loans, bonds, syndicated loans, promissory notes and structured credit, typically backed by real assets or resilient cash flows and acquired at significant discounts to par
Special Situations offer access to complex opportunities across sectors including real estate, industrials, consumer and services, where strong underlying businesses are constrained by overleveraged or misaligned capital structures
Investments can typically be made at 20–30% discounts to par, targeting equity-like returns with downside protection through asset backing, seniority and control rights. Active structuring, restructuring and workout strategies unlock value in dislocated, asset-backed situations with asymmetric risk-return profiles

Our strategy for uncommon returns is driven by factors we can control and execute

Trusted Relationships

Long-standing relationships with sellers and a strong reputation for being a reliable and collaborative partner with a low public profile to manage sensitive or reputationally delicate situations leads to recurring transaction partnerships and exclusive deal pipeline

Aligned Partnerships

Collaborating with trusted and fully aligned partners during the underwriting and asset management process accelerates the workout and recovery process. Respectful treatment of borrowers and counterparties quickens recoveries and prevents legal disputes.

Disciplined Approach

Our advice follows on a prudent investment approach with a focus on downside protection and limited to senior secured risk within our focus to increase resilience across credit and market cycles.