Armory’s objective is to invest in the debt of middle market companies with three primary areas of focus: senior floating rate leveraged loans; discounted high yield bonds and distressed debt. Armory focuses on small issue sizes ranging from $200 million to $500 million to target opportunities that trade at a significant yield premium over the traditional high yield or broadly syndicated loan market or, in the case of distressed, are too small for the larger distressed funds.
Returns are typically generated from a combination of current income and capital appreciation while seeking to preserve invested capital. At the core of each strategy is investing in the debt of high quality middle market companies at what we believe to be a discount to fundamental value and with compelling long-term fundamentals, including:
- Sustainable competitive advantages in niche markets
- Attractive underlying free cash flows
- Supportive asset coverages
- Operations in viable industries with “reason to exist”
Armory employs strict credit underwriting standards and rigorous bottoms-up diligence across each strategy, with an emphasis on downside protection rather than outperforming benchmarks. Throughout the entire investment process, Armory draws upon the collective middle market investment backgrounds of its deep team, as well as utilizing the firm’s strong relationships with bankers, brokers, and other financial professionals. Armory believes this team-based approach not only helps source market opportunities but more importantly helps to identify and mitigate investment risks.