Strategy

Whitecroft Capital Management is an alternative asset management firm based in London and Copenhagen, founded in 2016. The firm is a dedicated investor in bank risk sharing investments, with nearly two decades of experience in this area.

Bank risk sharing is a conservative private credit strategy that consistently yields returns comparable to, or even exceeding, those of leveraged loans, high-yield bonds, and other riskier alternatives, while primarily taking on risks associated with mostly investment-grade assets. The key advantage lies in capturing the regulatory premium, which stems from the scarcity of regulatory capital in the global financial system. Regulators are continually imposing increasingly stringent requirements on banks to hold more capital to cover various contingencies. We achieve superior returns by being compensated to share some of the economic risk from core loans that remain on banks’ balance sheets. These assets are not accessible in the public markets as banks originate these loans for their own portfolios. Primarily, banks engage in risk sharing to increase their lending capacity by freeing up regulatory capital. This creates a win-win situation for both banks and investors.

Our investment team has a wealth of experience, having been at the origins of the asset class since its inception nearly two decades ago. Over the years, we have developed a very clear vision on what works really well and what pitfalls to avoid. Our firm’s strategy is rooted in strong originating and structuring capabilities. We take pride in our disciplined approach to investments, comprehensive analysis, and meticulous attention to detail. We invest carefully and avoid taking excessive risks with investors’ money. As the asset class gains popularity and transactions with a broader range of risks emerge, our seasoned approach becomes increasingly crucial for investors. Our commitment, deep expertise, and unwavering dedication to our investors are the primary drivers of superior investment outcomes and enhanced investor experiences.

Bank risk sharing is a unique asset class that offers diversification from other capital market investments. The strategy is designed to deliver both robust income solutions, while also serving as a significant diversifier for investment portfolios. This holds true even for investors already engaged in risk sharing investments. We distinguish ourselves by providing access to a highly granular pool of exposures across multiple banks, alongside several liquidity options tailored to accommodate various investor needs.

The firm manages money for some of the largest institutional investors and aims to deliver stable and consistent risk-adjusted returns through various economic conditions.