Overland Advisors manages investments for business development companies and private funds. Their investment strategy focuses on non-control private credit investments, aiming for superior risk-adjusted returns. Overland Advisors employs a multi-pronged analytical approach to private credit investing that combines elements of traditional value investing together with event and legal analysis. The firm's investment decisions are subject to each client’s investment objectives and guidelines.
Fee Structure
Overland Advisors manages investments for business development companies (BDCs) and anticipates managing investments for private funds in the future.
For the BDC, Overland Advisors charges a quarterly management fee equal to an annual rate of 1.25% of the average of the value of the BDC’s net assets (excluding cash and cash equivalents) as of the last day of the most recently completed calendar quarter and the last day of the immediately preceding calendar quarter, payable quarterly in arrears.
The BDC also pays Overland Advisors an incentive fee consisting of two parts:
- The “investment income incentive fee,” calculated and payable on a quarterly basis, in arrears, and equals 15% of pre-incentive fee net investment income for the applicable calendar quarter, subject to a quarterly preferred return of 1.625% (i.e., 6.5% annualized) measured on a quarterly basis with a “catch-up” feature, and
- The “capital gains incentive fee,” an annual fee determined and payable, in arrears, as of the end of each calendar year in an amount equal to 15% of realized capital gains, if any, determined on a cumulative basis from inception through the end of such calendar year, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis from inception through the end of such calendar year, less the aggregate amount of any previously paid capital gains incentive fees.