Define the return source
We begin by identifying how value is expected to be created, what must occur for that outcome to be achieved and which assumptions carry the greatest risk.
Our approach
Structure matters.
Downside matters.
Alternative investment outcomes depend on more than identifying an attractive asset. Ceramic's framework places equal weight on underwriting, structure, alignment and portfolio construction.
Examine the structure
Ownership rights, security, covenants, governance, fees, control, liquidity and realisation pathways are examined alongside the underlying asset or business.
Test the downside
Scenario analysis considers adverse operating, financing, valuation and timing outcomes, together with practical recovery or mitigation options.
Assess alignment
We consider the incentives, experience and capital commitment of management, sponsors, counterparties and other investors.
Consider portfolio context
An opportunity is assessed not only on a standalone basis, but also for concentration, liquidity, duration and its contribution to investor objectives.