Aethon Credit Partners Delivers 14.2% Net Return in 2023, Announces New Fund

Aethon Capital's credit platform today reported that Aethon Credit Partners IV, L.P. ("ACP IV"), its flagship direct lending and structured credit fund, delivered a 14.2% net return in 2023, significantly outperforming the Credit Suisse Leveraged Loan Index (13.0%) and the ICE BofA High Yield Index (13.4%).

The strong performance was driven by disciplined credit selection, active portfolio management, and the platform's ability to source proprietary deal flow through its extensive network of sponsor relationships and direct origination capabilities.

"In a year characterized by significant credit market volatility and dispersion, our team's deep underwriting expertise and conservative approach to risk management delivered outstanding risk-adjusted returns," said Priya Mehta, Managing Partner. "We maintained a zero default rate across the portfolio while generating attractive current income and capital appreciation."

ACP IV, which held its final close at $4.8 billion in 2022, has now invested or committed approximately 85% of its capital across 94 portfolio companies, with a weighted average yield of 11.8% and average loan-to-value of 42%.

In light of the strong demand environment for private credit, Aethon also announced the launch of Aethon Credit Partners V ("ACP V"), targeting $6 billion in commitments. ACP V will continue the platform's strategy of originating senior secured loans to middle-market companies, with a focus on defensive, non-cyclical sectors.

Since inception in 2014, Aethon's credit platform has deployed over $15 billion across four vintages, generating a weighted average net return of 11.4% with minimal credit losses.