Axonic holds first close on its inaugural Private Credit Strategy

Axonic Capital, 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 Private Credit Offering in the middle of July. The strategy will hold subsequent closings throughout the remainder of the year.

The Axonic Private Credit Strategy will offer an alternative structure for allocators who want to take advantage of capital market inefficiencies in a closed-end structure. The strategy will target assets across commercial real estate (“CRE”), commercial mortgage back securities (“CMBS”) and residential transitional loans (“RTL”). The strategy will deploy capital into asset based cashflows that have asymmetric risk reward profiles at favorable valuations. More broadly, Axonic’s structuring will allow for the firm to mitigate default risk by structuring these cashflows with a sufficient margin of safety. By their nature, these more illiquid, private credit investments should provide low correlation to public credit markets and provide investors access to loans sourced through proprietary channels.

“We are more optimistic than ever regarding the opportunity set for this strategy,” said Clay DeGiacinto, Chief Investment Officer and Managing Partner of Axonic. “Private credit is an ideal vehicle for investing during periods of economic dislocation. In fact, this is an environment we have been anticipating since late last year. During such a time, the strategy will provide a patient source of capital designed to take advantage of the many dislocations we expect in the private markets. Some of that dislocation may be driven by relative value in public markets.”

Axonic has also recently hired Dominick Negrotto as a Managing Director on the Business Development team. Dominick previously was a Principal on 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 on the Capital Introduction team at Wells Fargo. Earlier in his career, Dominick was a Managing Director at Advanced Portfolio Management, where he oversaw manager selection and due diligence for the firm’s alternative investments.

“Given Dominick’s extensive background in the private markets space he will be instrumental in the fundraising for our Private Credit efforts,” said Peter Carey, Partner, Head of Business Development. “We are very excited to have Dominick on board as he brings invaluable experience that will benefit our longstanding 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 along with its structured credit expertise. Axonic Capital manages investment portfolios across Limited Partnerships, Separate Accounts, and two publicly registered Funds. The firm employs 55 professionals.

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