Key points
Our Investment Strategy
As investors and sponsors, we focus our strategy on simple credit deals. We look to syndicate and partner with investors who share our philosophy and bring meaningful deals to the market.
Our experience lies in finance; non-bank financial institutions (NBFIs) looking to raise capital to onward lend to consumers, corporates, debt purchase - anything with an immediate cash flow. We focus on this strategy because it achieves two main objectives we believe everybody should look for in an investment: instant security over assets (i.e. loan books) and immediate cash flow generation.
Growth-stage NBFIs have an advantage that sets them apart from most other growth-stage businesses — they can very quickly become cash flow positive.
We are not in the business of ten-year investment horizons; we leave that to the private equity sector. Private credit should be designed to be short-term, cheaper than equity (in the long term), but more expensive than public debt. Where that sits in a company's funding is explained in our guide to the capital stack.
Origination: Underwriting Discipline First
We choose to support companies with strong underwriting criteria, and we have a particular affinity for non-performing loans (NPLs), distressed or defaulted assets. Why is this? Income generation and capital growth.
We assess the underlying asset quality — but more importantly, the underwriting discipline. We measure less by traditional metrics and more by the institution's ability to source, price, and manage the asset. The value lies in the purchasing power and the repeatability and scalability of the underwriting process.
Downside Protection Through Over-Collateralisation
We manage downside protection by targeting over-collateralisation and minimising non-asset-bearing payments made from investor capital, such as operational expenditure.
The credit line should be used predominantly for revenue-generating activity, not overhead. This ensures the deployment of capital is efficient and directly linked to cash-generating assets for recourse directly to investors in the event of default. Moreover, we maintain active oversight during the term of the investment to monitor collateral values and ensure covenant discipline.
Predictable Upside: Contracted Yield
Our return expectations are defined upfront, with clearly structured terms and contracted yields. Predictability is essential; we are not looking for asymmetric equity-style outcomes.
We seek yield, not speculation. Therefore, we focus on structures that offer contractual interest payments, secured principal, and a defined exit timeline.
Where relevant, we also incorporate profit-share elements — but only where the base case return remains strong and independent of those variables. For how we judge return against risk, see what risk-adjusted returns are.
Macroeconomic Factors and Resilience Across Cycles
We build strategies that are macro-resilient, meaning they are designed to operate under any economic conditions. In an environment of rising rates and tightening liquidity, we find opportunities where traditional capital sources retreat.
NBFIs often gain market share during dislocations, and we look to deploy capital in these cycles when pricing power is highest, and competition is weakest.
Our conservative underwriting, focus on cash generative assets, and active partnership model means we are well-positioned across economic cycles, not just during the bull phase.
Investment Strategy Summary: Our Criteria
We identify attractive, risk-adjusted opportunities from the UK, Europe, and North America that meet the following criteria:
- Company Type: Growth stage businesses with £1m to £5m EBITDA
- Geography: UK, Europe or North America
- Asset Type: Agnostic; tangible asset purchasing strategy, focused on non-bank financial institutions (NBFIs)
- Ownership: Private equity-backed or privately owned
- Issuance Size: Debt facilities ranging from £5m to £20m
- Investment Terms: 12–36 months
- Asset Coverage: Starting from 70%
- Returns: Risk-adjusted
- Investment Structure: Credit Linked Note
Update (October 2026): Since this was written, our lending has extended to the GCC, including a USD 7.5 million senior secured facility for UAE SME lender Aura Finance. Facilities are now typically first institutional credit lines of roughly $5–25 million, issued through compartments of our Luxembourg vehicle, Kingsbury Securitisation Platform SARL.
To Summarise
Private credit, when executed with discipline and focus, offers one of the most compelling value propositions in modern finance — yield, security, and liquidity.
Our strategy is built for institutions and individuals who value transparency, control, and measurable returns. We do not chase risk, but we know how to price it.
We are specialists in short-duration, cash-yielding, asset-backed lending. That is our edge. For the reasoning behind our focus on lenders, read why we allocate to NBFIs.
Frequently Asked Questions
What is Kingsbury & Partners' investment strategy?
We focus on short-term, asset-backed private credit, lending predominantly to non-bank financial institutions that onward lend to consumers and businesses or buy debt. The aim is immediate security over assets and immediate cash flow.
Why lend to non-bank financial institutions?
Growth-stage NBFIs can become cash flow positive very quickly, and their loan books give lenders direct security over income-producing assets. They also tend to gain market share when banks and other traditional lenders retreat.
How does the strategy protect investors on the downside?
Through over-collateralisation, by keeping investor capital for revenue-generating activity rather than overhead, and by actively monitoring collateral values and covenants throughout the term.
What returns and terms should investors expect?
Returns are defined upfront through contracted yields, secured principal and a defined exit, typically over 12 to 36 months. Profit-share elements are added only where the base case return already stands on its own.
How do investors access the strategy?
Through a credit linked note, a debt security whose returns are tied to the performance of the underlying credit facility.