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Axonic Holds First Closing of Inaugural Private Credit Offering

By on July 28, 2022 0

NEW YORK–(BUSINESS WIRE)–Axonic Capital, a New York-based structured credit, commercial real estate and systematic fixed income specialist with $4.8 billion in assets under management, announced the first closing of its inaugural offering of private credit in mid-July. The strategy will hold subsequent closes throughout the rest of the year.

Axonic’s private credit strategy will provide an alternative structure for grantees who wish to take advantage of capital market inefficiencies in a closed structure. The strategy will target assets in commercial real estate (“CRE”), commercial mortgage-backed securities (“CMBS”) and transitional residential loans (“RTL”). The strategy will deploy capital into cash flows based on assets that have asymmetric risk/reward profiles at favorable valuations. More broadly, Axonic’s structuring will allow the company to mitigate the risk of default by structuring these cash flows with a sufficient margin of safety. By their nature, these more illiquid private credit investments should offer low correlation to public credit markets and allow investors to access loans from proprietary channels.

“We are more optimistic than ever about the opportunity presented by this strategy,” said Clay DeGiacinto, Chief Investment Officer and Managing Partner of Axonic. “Private credit is an ideal vehicle for investing in times of economic upheaval. In fact, it’s an environment we’ve been anticipating since late last year. During such a period, the strategy will provide a patient source of capital designed to take advantage of the many disruptions we anticipate in private markets. Some of this dislocation may be driven by relative value in public markets.

Axonic also recently hired Dominick Negrotto as Managing Director within the Business Development team. Dominick was previously director of the business development and investor relations team at Atalaya, an asset-based private credit and special opportunities firm. Prior to joining Atalaya, Dominick was a Director within the Capital Introduction team at Wells Fargo. Earlier in his career, Dominick was Managing Director at Advanced Portfolio Management, where he oversaw manager selection and due diligence for the firm’s alternative investments.

“Given Dominick’s extensive experience in private markets, he will be instrumental in raising funds for our private credit efforts,” said Peter Carey, Partner, Head of Business Development. “We are very pleased to have Dominick on board as he brings invaluable experience which will benefit our long-standing institutional investors and support the development of new partnerships.”

About Axonic Capital

Founded in 2010, Axonic Capital offers commercial and residential real estate strategies, systematic fixed income and commercial lending strategies as well as structured credit expertise. Axonic Capital manages investment portfolios in limited partnerships, segregated accounts and two publicly registered funds. The company employs 55 professionals.