MCGINTY ROAD PARTNERS, LP

Thesis

The firm's strategy is to deliver consistent risk-adjusted returns by identifying and capitalizing on market segments overlooked by traditional capital providers, including out-of-favor industries, geographies, and collateral types, as well as smaller deal sizes. Their approach is flexible and multi-strategy, encompassing Equipment Finance (loans and leases secured by commercial equipment in sectors like transportation, construction, and mining), Loan Portfolios (credit-intensive, small-balance commercial and industrial loans and leases), and Corporate Credit (tradable capital structures and private market originations too small for larger funds). McGinty Road Partners emphasizes a strong focus on collateral, aiming for mid-teens net annualized returns with downside protection, and is known to lend at a discount to hard collateral values, seeking to foreclose at a profit when necessary. The firm operates with a 'right-sized' approach to capital, allowing for nimbleness. While specific AUM figures are not detailed, the firm was raising capital to reach $500 million in 2021. They typically invest in the $5-10 million range per deal, allowing for portfolio diversification.