Atlas Credit Partners is known as an opportunistic credit manager that invests in public and private opportunities that are facing disruption – either cyclical, secular, or regulatory. Pulse 2.0 interviewed a representative at Atlas Credit Partners Team to learn more.
Background Of Atlas Credit Partners
Atlas Credit Partners (ACP) was founded in late 2019, is a Houston, TX-based asset management firm specializing in investing and partnering directly with management teams and businesses in transition. We provide minimally dilutive capital solutions to businesses in order to facilitate transition, accelerate growth and create long-term value for all stakeholders.
Evolution Of Atlas Credit Partners’ Thesis
How has Atlas Credit Partners’ thesis evolved over time? “Atlas’ thesis has always been to be cycle-ready, not cycle dependent. Our investing strategy can pivot swiftly depending on the current macroeconomic environment. For example, during Covid-19 in 2020, Atlas was able to capitalize in public markets, but when public opportunities aren’t as plentiful (during 2021 for example), Atlas can pivot to lending directly and continue creating superior risk-adjusted returns for our investors,” said the company representative
Significant Milestones
What have been some of Atlas Credit Partners’ biggest milestones? “Each ACP portfolio company has been a meaningful milestone to our firm. Every partnership we forge brings a wealth of experience and operational expertise, serving to enrich and hone the entirety of the Atlas portfolio. We take immense pride in each of our borrowing partners and welcome the opportunity to establish further partnerships,” explained the company representative.
Investment Success Stories
When asked about investment success stories, the company representative replied:
“Our success isn’t driven by any one investment, but rather the collective performance of all our partners. We pride ourselves on differentiating within the direct lending space with an operational focus, as well as a management team sourcing network. This partnership style has worked well for our firm and has generated a significant amount of referral-based business; which we believe is the highest compliment – when our current borrowers recommend our expertise and capital solution to their peers. On multiple occasions, CEOs have shared our value-added capital solution with their similarly positioned friends and acquaintances; to us, those are the greatest accomplishments.”
Assets Under Management
To date, Atlas has deployed $750 million and the firm has generated best-in-class risk-adjusted returns for its investors. And ACP is currently investing in its 3rd Private Credit Vehicle and has significant capital commitments for its differentiated lending strategy.
Industry Focus
What are some of the industries that Atlas Credit Partners is focused on? “Atlas Credit Partners is industry-agnostic, which allows us to select the best risk/return profiles across all industries in the current macro landscape. This strategy helps eliminate myopia risks by being constrained to a singular industry. Lately, we have been finding attractive opportunities with high-quality growth-centric businesses in transition that also have substantial Intangible Assets or IP that are misunderstood by the markets.. We believe businesses that fit this characteristic help us build the intersection of growth and value,” a company representative commented.
Differentiation From The Competition
What differentiates Atlas Credit Partners from other firms? “ACP differentiates through sourcing and process, both of which are operationally and management team driven; this direct-partnership approach is our key to finding better businesses and understanding the investment risks. We create long-term capital solutions that allow management teams to operate their full business plan and pull growth trajectory forward by using transitional and strategic capital,” the company representative affirmed. “The full ACP team of investment professionals has “real world” operational experience on structures best fit for their unique situation.”
Future Goals
What are some of Atlas Credit Partners’ future goals? “ACP will continue to execute on our business plan and current trajectory; as we get closer to $1 billion of capital investments it’s important to stay humble and remember our core principles and value investing fundamentals. ACP realizes that it is a privilege to be in our business; not only being trusted to manage the capital of our investors, but also being trusted to partner with world-class management teams on advancing their business plans,” concluded the company representative.
