Approach
This strategy takes advantage of privately negotiated covenant structures, investing in fixed-rate corporate debt sold to investors and exempt from SEC registration. We believe that intensive up-front underwriting of individual securities, paired with appropriate structural and covenant protection, leads to more flexible portfolios and strong risk-adjusted performance in all market conditions.
Key Benefits
- Deal Sourcing and Selectivity: Our robust deal flow allows us to avoid stretching to fill production demand or to achieve sector/name level diversification
- Integrated Deal Team: Our unique integration of legal staff within the investment team facilitates partnership with deal analysts at the onset of a deal and the incorporation of our specialized Private Credit High Yield team at early points of credit distress provides significantly lower losses
- Deal Structure First: Our disciplined investment underwriting and monitoring process does not change with market demands
Performance
Performance
| As of 12/31/19 | 1 Month | 3 Month | YTD | 1yr | 3yr | 5yr | 10yr | Since Inception (1/01/04) |
|---|---|---|---|---|---|---|---|---|
| Composite Gross | 0.27 | 1.00 | 13.06 | 13.06 | 5.84 | 4.63 | 5.48 | 5.70 |
| Composite Net | 0.24 | 0.93 | 12.74 | 12.74 | 5.54 | 4.32 | 5.18 | 5.40 |
| Index* | 0.35 | 1.10 | 12.15 | 12.15 | 5.09 | 3.98 | 4.58 | 4.58 |
| Gross Excess Return | -0.08 | -0.10 | 0.92 | 0.92 | 0.75 | 0.65 | 0.91 | 1.12 |
* Bloomberg Barclays Corporate Duration-Adjusted Index
Past performance does not guarantee future results.
Periods greater than one year are annualized. Gross returns are presented after all transaction costs, but before management fees. Returns include the reinvestment of income. Net performance is shown after the deduction of a model management fee equal to the highest fee charged. The returns presented are not subject to the input, calculation, presentation, and disclosure requirements of Global Investment Performance Standards (GIPS). Information is subject to change at any time.
Literature
Voya Private Credit Strategy Brief
Q4 2019
Includes Investment Commentary
Approved For: Financial Professional or Qualified Institutional Investor Use Only
Voya IM Fixed Income Profile
Approved For: Financial Professional or Qualified Institutional Investor Use Only
Investment Team
Chris Lyons, CFA
Managing Director and Group Head, Private Credit
Years of Experience: 31
Years with Voya: 27
Chris Lyons is the head of the private credit group where he is responsible for the sourcing, underwriting and management of all private debt securities Voya Investment Management invests on behalf of its clients. Chris has focused exclusively on the private debt markets for the firm since 1993, originally joining the team at the analyst level. Additional related experience includes work as a commercial bank line officer, commercial bank credit officer and debt capital markets specialist with SunTrust Banks, Inc. In addition to his duties in the private debt arena, he also serves on the executive leadership team for proprietary assets and is chairman of the Voya credit committee. Chris holds a BS in industrial management from the Georgia Institute of Technology and holds the Chartered Financial Analyst® designation.
Virginia L O'Kelley, CFA
Vice President, Portfolio Manager, Private Credit
Years of Experience: 19
Years with Voya: 15
Virginia O'Kelley is the portfolio manager for the private credit team at Voya Investment Management. She is responsible for underwriting and managing the private investments that Voya Investment Management does on behalf of its third party clients. She has been a direct investor in the asset class since 2009 and has experience reviewing transactions across multiple sectors and geographies. Prior to joining the company she was with Wells Fargo Corporation holding various analyst positions. Virginia has a BS with honors from the University of North Carolina - Chapel Hill, a MBA with honors from the Goizueta Business School at Emory University, and holds the Chartered Financial Analyst® designation.
Greg R Addicks, CFA
Managing Director and Team Leader, Private High Yield
Years of Experience: 30
Years with Voya: 23
Greg Addicks is the head of private high yield at Voya Investment Management. He has taken leadership roles in structuring, negotiating and managing restructurings in Argentina, Australia, Canada, Ireland, New Zealand, the United Kingdom, the United States, Mexico and several other countries. This included acting as lead negotiator/chairman of official and ad hoc creditors’ committees. In previous positions at Voya, Greg focused on international private credits with a concentration in emerging markets. He invested in and managed a variety of structured and unsecured debt securities in over 20 countries in North America, Latin America, Europe, Africa and Asia. Prior to joining the firm, Greg worked for NationsBank (and predecessors) from 1990 to 1997, mainly in the small- and middle-market corporate banking area. Greg has a BS in business administration from the University of Georgia, an MS in finance from the Georgia State University and holds the Chartered Financial Analyst® designation.
Disclosures
Principal Risks
All investing involves risks of fluctuating prices and the uncertainties of rates of return and yield inherent in investing. High-Yield Securities, or "junk bonds", are rated lower than investment-grade bonds because there is a greater possibility that the issuer may be unable to make interest and principal payments on those securities. The strategy may use Derivatives, such as options and futures, which can be illiquid, may disproportionately increase losses and have a potentially large impact on performance. Foreign Investing does pose special risks including currency fluctuation, economic and political risks not found in investments that are solely domestic. Risks of foreign investing are generally intensified in Emerging Markets. As Interest Rates rise, bond prices may fall, reducing the value of the share price. Debt Securities with longer durations tend to be more sensitive to interest rate changes. Other risks of the Fund include but are not limited to: Credit Risks; Other Investment Companies’ Risks; Price Volatility Risks; Inability to Sell Securities Risks; and Securities Lending Risks.