Introducing Zenzic Capital
We specialise in lending and investing across a range of real estate asset classes
Zenzic was founded in 2014 by partners with investment banking and corporate finance experience, the team have financed over £1.25bn of real estate and asset-backed transactions across alternative sub-sectors including logistics, PBSA, PRS, hotels and leisure. Since inception, Zenzic Capital has established a reputation for providing bespoke financing solutions to real estate borrowers and investment solutions for investors.
Zenzic Capital provides a range of structured financing solutions to match the needs of borrowers across the UK and Europe. We have built an extensive track record providing both single-site and platform level funding across acquisition, development and opportunistic scenarios.
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Zenzic in a Snapshot
Structuring Expertise
- Expertise in structuring derives from nearly a decade in opportunistic credit advisory
- Advised on over £1.25bn of transaction with most of the leading opportunistic private credit funds
- At forefront of structuring developments post GFC including pan-asset/ borrowing base facilities; cross-border & mixed sector portfolios; public to private transactions
Credit & Operational Capability
- Team is a rare combination of credit and asset management professionals
- We understand how to write good credit and manage real estate from an operational perspective in enforcement scenarios
- Have successfully invested through Brexit, COVID and now rapid monetary tightening
Depth and Breadth of Origination
- Highly developed pipeline utilising over a decade’s worth of advisory relationships with access to over 500 direct and intermediary deal sources across UK and Europe
- Over £500m of transactable pipeline derived from non-auction relationships
Access to & Expertise in Niche Markets
- Over a decade of sector-wide relationships in lower mid-market across UK and Europe
- Deep experience across emerging sectors that offer higher growth prospects than traditional CRE (office; retail etc)
Investment Approach
Our investment approach is driven by the following core principles that permeate our thinking, our investments and the DNA of our firm.
The Upside of Downside Protection
We believe that entry price, or creating value through the buy, is the most critical factor in limiting risk. Accordingly, investing on a value driven basis – and the margin of safety it creates – is at the centre of our investment process. We seek convexity in all our investments where we can create a day 1 margin of safety through subordinated value while enjoying upside participation.
The Road Less Travelled
We believe that the best investors should be prepared and capable of looking where value is, not where they would like it to be, and the deepest mispricings are rarely the most visible. Accordingly, a key part of our investment process is identifying market inefficiencies caused by cyclical swings, industry disruption, capital scarcity, a specific transaction dynamic or wider dislocations.
Size Matters
Our investment focus is on lower middle-market opportunities, where financing options are more limited, but a wealth of desirable transactions exist. Size can genuinely be a disadvantage in some cases, particularly when it comes to defining your opportunity set. As one legendary opportunistic investor put it: “While it helps to have extraordinary size to be an NBA player, there are a lot of big lugs who aren’t any good and can’t make it in the NBA despite their size. It’s also how skilfully you play!”
Creativity
The herd mentality nearly always prevails in financial markets. It is safer to be in the pack even when the consensus is shown to be wrong. Creativity therefore requires an insistence on independent thought, an acceptance of uncertainty and to act with boldness when an opportunity presents itself.
Structure defines strategy
Special opportunities in private markets are a tabula rasa for investment firms. The ability to structure – defined in our view as the application of legal, financial and commercial knowledge to mitigate risk – is a hallmark of the firm and needs to be bespoke to each transaction. We utilise the full panoply of protections available to both creditors and equity-holders, typically coupled with novel additional structural enhancements to elevate liquidity and/or mitigate jurisdictional risk.
Patience
We invest via permanent capital structures that avoid liquidity pressures that can drive either short-termism or value destruction through necessitated monetisation of positions. Being able to wait and to avoid being either a forced buyer or seller is in our view a material advantage in today’s investment universe.
The Zenzic Team
