Garnet Credit Management offers investment advice primarily on credit and value-oriented investments to collateralized loan obligation vehicles (CLOs), which are private funds. Garnet may also provide similar services to separately managed accounts, commingled accounts, or private funds that invest in CLOs. Garnet's investment strategy focuses on senior secured loans and corporate bonds, using a "bottom-up" approach with an emphasis on downside protection.
Fee Structure
Garnet Credit Management's fees typically consist of three parts:
- A base fee (Senior Collateral Management Fee)
- A subordinated fee
- An incentive fee if certain return goals are met.
The base and subordinated fees are calculated as a percentage of the collateral's principal amount and paid quarterly. The incentive fee is a percentage of proceeds that would otherwise go to certain note holders. The exact fees are agreed upon with each client and can be modified. Fees may vary among clients and investors in the same client.