Skip Navigation

What We Do

We seek to create a strategic advantage by institutionalizing our processes and structuring our investments to be resilient across a wide range of market environments.

Disciplined and Consistent

Target White Spaces

We believe attractive opportunities often appear between traditional mandates, overlooked by others, that can be capitalized on by those willing to be first movers.

Build Investment Businesses

We believe long-term results are predicated on developing repeatable investment approaches, powered by robust processes and infrastructure. One-off trades cannot achieve that goal.

Navigate Market Regimes

We believe the preservation and growth of investor capital comes from adapting to different environments, made possible by a broad set of investment capabilities.

Our Compass

What guides our firm’s evolution? It is the intersection of three things: Market Opportunity, Magnetar Skill, Investor Needs.

Our Approach

Source

We believe that our reputation and long-standing relationships within various industry ecosystems enable us to provide our investors with access to differentiated opportunities.

Analyze

We possess the intellectual rigor and experience to develop in-depth asset views, dissect capital structure intricacies, and navigate cash flow nuances.

Structure

We have found that thoughtful structuring of investments is key to achieving differentiated returns.

Risk Manage

We rely on our robust risk management process at the investment and portfolio level to maintain an anticipated favorable risk-return profile across various market environments.

Complement

Collectively, we aim to provide investors with an array of investment approaches that they can use to complement their portfolios.

Our Core Strategy Landscape

Our core businesses enable us to cater to a wide range of investor needs. We also develop new strategies and deploy them when appropriate.

Explore Our Core Strategy Continuum

Alternative Credit and Fixed Income

Growth Capital

We invest primarily in companies with stable cash-flow profiles across a range of sectors, including:

  • Transportation: Aviation, Automotive, etc.
  • Real Estate: Rental, Home Rehab and Resale, New Home Development, etc.
  • Energy: Solar Energy, Consumer Electric Retailing, etc.
  • Consumer: Healthcare, Consumer ABS, etc.

Our mandates enable us to invest in the equity and/or debt of companies such as mortgage lenders, auto lenders, etc. These firms are often platforms filling a market niche that has grown after the Global Financial Crisis.

Opportunistic Market

We participate in certain credit strategies over time on an opportunistic basis.

  • Investment in corporate credit (and mortgage) securities
  • Implementation of quantitatively-based strategies that rely on modeling security and portfolio credit risk and/or discount to modeled fair value
  • Examples of these strategies include investment in collateralized loan obligations (CLOs), portfolios of corporate credits, convertible bonds, and mortgage securities

Structured Invest.

We invest in portfolio participation structures by which financial institutions may obtain regulatory capital relief.

We implement transactions in various ways, with risk exposure to institutions' underlying balance sheet assets, ranging from investment grade to high yield exposures, and beyond.

This strategy fills a market need that has grown since the Global Financial Crisis.

Energy and Infrastructure

Private Investments

We invest in North American energy and infrastructure companies.

  • The capital we invest enables businesses to achieve a variety of strategic priorities: (i) organic growth (ii) mergers and acquisitions (iii) liquidity
  • Since 2005, we have invested in companies across most major basins in North America
  • Companies have typically had enterprise values between $500mm and $10bn
  • Our capital duration enables us to become long-term investors

Systematic Investing

Event Driven

We define “event driven” as strategies seeking to profit from investments in companies experiencing a material change in their ownership or capital structure.

  • The opportunity set includes investing in stocks undergoing mergers, as well as investing in companies engaging in spin-offs, divestitures, major stock or debt repurchases, and other key events in the corporate life-cycle
  • One of the hallmarks of event driven strategies is habitat rotation, which describes how owners of a stock (typically fundamental investors) will seek to quickly reduce their ownership position due to a corporate event. Event driven investors who are willing to accumulate shares during this habitat rotation are often able to earn a positive risk premia
  • Our HRP focus is to efficiently extract the risk premia associated with event driven strategies

Long-Short

We define “long-short” as strategies seeking to profit by buying stocks (or other instruments) deemed to be attractive on various bases (e.g., fundamental), and shorting stocks (or other instruments) deemed to be unattractive.

  • The opportunity set includes investing (long or short) in stocks, debt, and other instruments
  • The strategies are also underpinned by human behavioral biases and market structural constraints that tend to cause investors to under-appreciate an instrument’s quality and value characteristics
  • Our HRP focus is to efficiently extract the risk premia associated with fundamental long-short investing

Relative Value

We define “relative value” as strategies seeking to profit from the relative mispricing of related assets.

  • The opportunity set includes the relationship of different instruments related to a single issuer as well as the trading relationship of instruments of multiple issuers
  • Relative value strategies can be implemented across the opportunity set via a quantitative approach, focusing on theoretical and historical pricing relationships
  • Our HRP focus is to efficiently extract the risk premia associated with these strategies

Quantitative

We define “quantitative” as those strategies seeking to profit from statistical anomalies.

  • The opportunity set includes investing (long or short) in stocks, futures, and other instruments
  • Human behavioral biases and market structural constraints often combine to generate anomalies, which quantitative investors can spot and take advantage of
  • Our HRP focus is to efficiently extract the risk premia associated with quantitative strategies
  • Our HRP quantitative strategies currently include systematic equity mean reversion and systematic trend / counter trend

Our Impact

We invest growth capital in businesses that drive the real economy. Our portfolio companies have had exposure to a range of assets, e.g.,:

European SMEs

~100k

4x4 Rental Trucks

~4,500

Rental Homes

~4,000

Vacant Developed Lots

~1,000

Residential Rehab Properties

~1,000

Post-Acute Care Facilities

~100

Major Motion Films

~100

Hospital Beds

~100

Aircraft & Aircraft Engines

~100

What's On Your Mind?

Let Us Know

What's On Your Mind?

Thank You

We appreciate your inquiry and will be in touch shortly!

Close