COVALENCE Private Credit and Direct Lending Successor Management

Dundon offers the Covalence strategy solely to qualified institutional investors, providing them with successor management alternative for private credit and direct lending allocations whose incumbent managers no longer wish, or are no longer able, to meet those investors’ requirements.

Covalence deploys Dundon professionals’ decades of experience originating, monitoring, disposing of and restructuring complex credit investments to resolve the characteristic challenges of these portfolios: illiquidity, opacity, long tenor, weak covenants, prevalence of borrower defaults and risks of defaults and concomitant opportunities to make protective advances and extend debtor-in-possession financing or monetize the option to do so. Covalence is suitable for scenarios where redemptions and secondary bids would crystalize losses which a longer-term strategy might mitigate, or where redemptions or secondary sales are unavailable.