Safety is the Strategy
Ghost Tree Partners has spent the last five years developing and deploying our private credit strategy for lower middle-market borrowers.
Streamlined Internal Infrastructure – Bolstered by External Expertise
Focus on Downside Protection
The focus of GTP is first risk mitigation. We include tangible assets and positions in the capital structure to provide protection.
Attractive Structures
Strong lender protections come from a full covenant package and control of the capital stack, with help given to borrowers early, intervening in stressed scenarios if needed.
Multiple Paths to Exit
While most borrowers refinance as expected, we game plan for multiple exit scenarios and, given our distressed backgrounds and cycle-tested experience, can work with companies in stressful situations through a flexible investment approach.
Asset Coverage
We underwrite each loan independently, making sure asset coverage is underpinned by discounts to intrinsic value.
Avoid Distress
We do not take bets on whether a company or market will recover, nor do we rely on secondary liquidity. We do the due diligence and take the most compelling ideas forward.
Deal Sourcing
With over 60 years of combined investment experienced, GTP has cultivated a vast sourcing network with the proven ability to develop and maintain a robust pipeline of deals. This allows GTP to assess opportunities across the private credit spectrum and select niche sourcing partner experts to aid in building a diversified portfolio.
Portfolio
With a core focus on private credit, the GTP investment approach can also target areas of specialty finance and stressed credit and can be opportunistic when appropriate. This process creates a diversified portfolio of private credits across strategies, geographies, asset types, and sponsors in one solution.
Risk Management
Through rigorous up-front due diligence and continuous monitoring, Ghost Tree Partners places protections on each deal.
Due diligence:
- Secured debt, covenant-heavy, limited carveout baskets
Extensive rights and controls
Low LTVs
Low debt-to-EBITDA multiples
Expansive PE-style due diligence with a focus on value
Exit planning:
Exit plan in place to ensure recovery if the company is unable to meet obligations
Mapping potential buyers of the company or underlying assets
Network of advisors/turnaround specialists that can assist with asset management if needed
Collateral analysis performed up-front
Target Sectors
Target Deals
Loan Sizes
$10-30mm
Cash Yields
8-12%
Loan-to-Value Range
0-70%
Loan Terms
3-4 Years
Seniority
Senior-Secured, 1st Lien
Target Geographies
US, Europe, Developed Asia