What Is Alternative Credit
Tivio Capital’s Structured Credit team is dedicated to investing in debt securities with higher return potential, assuming higher levels of credit risk. Our strategy combines deep fundamental analysis, active management, and constant monitoring to capture attractive credit risk premiums. We seek to identify opportunities in companies with differentiated risk profiles, offering investors the potential for higher long-term returns. Through rigorous processes and a specialized team, we deliver solutions that combine performance and diversification, always focusing on risk mitigation and long-term value creation.
Why Invest?
Alternative Credit offers higher return potential compared to traditional credit, by capturing risk premiums from selected issuers through active management and rigorous analysis. It is a strategy designed to diversify portfolios and pursue meaningful long-term returns.
Higher return potential
Investing in issuers with higher credit risk allows the capture of attractive risk premiums, seeking returns above traditional fixed income.
Active management and in-depth analysis
A strategy based on rigorous fundamental analysis and constant monitoring to identify opportunities and mitigate risks.
Intelligent diversification
Allocation across different sectors and issuers, balancing risk and return while reducing concentration
Access to exclusive transactions
Participation in restricted and structured issuances, expanding investment opportunities for investors.
Investment strategies
Frequently Asked Questions (FAQs)
It is an investment class focused on debt securities issued by borrowers with higher credit risk, offering higher risk premiums and greater return potential compared to investment grade credit. In exchange, it requires careful analysis and active management to mitigate risks.
Private Credit focuses on issuers with high credit quality and lower risk, aiming at capital preservation. Alternative Credit, on the other hand, assumes higher risk to capture higher returns and is therefore more suitable for investors with a higher risk tolerance.
The main risks include issuer default, mark‑to‑market volatility, and limited liquidity. Active management and diversification play a key role in reducing these risks.
Alternative credit funds generally have longer subscription and redemption terms (such as D+90, D+180, or longer), reflecting the lower liquidity of the underlying assets. Investors should always consult the fund’s fact sheet for specific terms.
Alternative credit funds are subject to the standard taxation applicable to fixed income funds, including regressive income tax rates and semiannual advance income tax collection, known in Brazil as “come‑cotas”. Pension funds and certain incentivized instruments, such as infrastructure debentures, may offer tax advantages, including income tax exemption for individual investors in specific cases, such as infrastructure projects.
