Armory focuses on investing in the debt of middle market companies across three primary areas:
- Senior floating rate leveraged loans
- Discounted high yield bonds
- Distressed debt
The firm targets smaller issue sizes, typically ranging from $200 million to $500 million, where opportunities often trade at a meaningful yield premium compared to the traditional high yield and broadly syndicated loan markets. In distressed situations, these opportunities are often too small for larger funds, creating a more attractive and less competitive investment landscape.
Returns are typically generated through a combination of current income and capital appreciation, with a focus on preserving invested capital. At the core of each strategy is investing in the debt of high-quality middle market companies at what we believe to be a discount to fundamental value, supported by compelling long-term fundamentals, including:
Sustainable competitive advantages in niche markets
Attractive underlying free cash flows
Supportive asset coverages
Operations in viable industries with “reason to exist”
Armory employs strict credit underwriting standards and rigorous bottoms-up diligence across each strategy, with an emphasis on downside protection rather than outperforming benchmarks. Throughout the entire investment process, Armory draws upon the collective middle market investment backgrounds of its deep team, as well as utilizing the firm’s strong relationships with bankers, brokers, and other financial professionals. Armory believes this team-based approach not only helps source market opportunities but more importantly helps to identify and mitigate investment risks.
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