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ACCESS LEVERAGE GOVERNANCE DIVERSIFICATION TAX SHELTER EXPERTISE

ACOF1 seeks to deliver compelling risk-adjusted returns, with a focus on capital appreciation.

ACOF1 seeks to achieve this objective through investments in a diversified portfolio of directly originated senior secured loans to U.S. middle market and upper middle market companies.

Our strategy employs portfolio diversification and prudent use of leverage to enhance returns while maintaining a strong emphasis on downside protection.

Managed by Adnate Capital Management LLC, ACOF1 is grounded in disciplined underwriting, robust governance, and rigorous risk management, with a long-term focus on capital preservation and value creation.

ACOF1 seeks to deliver compelling risk-adjusted returns, with a focus on capital appreciation.

By investing in a diversified portfolio of directly originated senior secured loans to U.S. middle market and upper middle market companies.

Our strategy employs portfolio diversification and prudent use of leverage to enhance returns while maintaining a strong emphasis on downside protection.

Managed by Adnate Capital Management LLC, ACOF1 is grounded in disciplined underwriting, robust governance, and rigorous risk management, with a long-term focus on capital preservation and value creation.

ACOF1 seeks to deliver compelling risk-adjusted returns, with a focus on capital appreciation, by investing in a diversified portfolio of directly originated senior secured loans to U.S. middle market and upper middle market companies. The strategy employs portfolio diversification and prudent use of leverage to enhance returns while maintaining a strong emphasis on downside protection.

Managed by Adnate Capital Management LLC, ACOF1 is grounded in disciplined underwriting, robust governance, and rigorous risk management, with a long-term focus on capital preservation and value creation.

Why ACOF1?

Institutional-grade private credit strategies typically reserved for large allocators. With direct exposure to senior secured, floating-rate loans to U.S. middle market borrowers.
Moderate, disciplined use of leverage to enhance returns while preserving risk controls. Structured to maintain robust coverage ratios and downside protection.
Oversight by a Big 4 auditor and global custodian to ensure transparency and safeguarding of assets. Robust internal controls, independent directors, and thirdparty fund administration.
Broad diversification across sectors, borrowers, and structures to mitigate credit concentration risk. Approach enhances portfolio resilience and supports consistent riskadjusted returns across market cycles.
Offshore master-feeder structure designed to optimize tax efficiency for U.S. and non-U.S. investors. BVI domicile with U.S. feeder to facilitate flexible investor participation.
Seasoned investment team with deep credit, structuring, and risk management experience. Proven track record underwriting and managing private credit portfolios across credit cycles.

Access

Institutional-grade private credit strategies typically reserved for large allocators. With direct exposure to senior secured, floating-rate loans to U.S. middle market borrowers.

Leverage

Moderate, disciplined use of leverage to enhance returns while preserving risk controls. Structured to maintain robust coverage ratios and downside protection.

Governance

Oversight by a Big 4 auditor and global custodian to ensure transparency and safeguarding of assets. Robust internal controls, independent directors, and thirdparty fund administration.

Diversification

Broad diversification across sectors, borrowers, and structures to mitigate credit concentration risk. Approach enhances portfolio resilience and supports consistent riskadjusted returns across market cycles.

Tax Shelter

Offshore master-feeder structure designed to optimize tax efficiency for U.S. and non-U.S. investors. BVI domicile with U.S. feeder to facilitate flexible investor participation.

Expertise

Seasoned investment team with deep credit, structuring, and risk management experience. Proven track record underwriting and managing private credit portfolios across credit cycles.

Strategy

Our investment strategy is designed to deliver attractive risk-adjusted returns through strategic investments, diversification, and active portfolio management, guided by the expertise of the Investment Manager.

Portfolio Allocation:
Senior secured first lien loans to U.S. middle market companies, sourced through direct origination, intermediaries, or the syndicated loan market, with an emphasis on privately negotiated transactions.

Opportunistic Investments
Selective exposure to second lien loans, subordinated debt, mezzanine financing, and equity or warrants, focusing on sponsor-backed companies and rigorous risk management.

Flexible and Dynamic Approach
Maintain sector, geographic, and deal size diversification while preserving flexibility to pursue emerging private credit opportunities and adapt to changing market conditions.

Why Private Credit?

Private credit has grown from $100 billion in 2000 to over $2 trillion by 2024, driven by the retreat of traditional banks and rising institutional demand. It offers higher yields, lower volatility, senior secured positioning, and protection against rising rates. With strong market tailwinds, private credit is projected to surpass $3 trillion by 2028, attracting more institutional investments for diversification and stable income.

Average Return of 9.9% Since 2015

Source: Cliffwater Direct Lending Index (CDLI).
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Why Adnate Capital?

At Adnate Capital, our mission is to democratize access to alternative investments through thoughtfully designed vehicles like our flagship fund, ACOF1. We are building a platform that offers investors access to high-quality opportunities supported by strong governance structures, transparent processes, and a long-term value creation mindset.

Capital Previously Managed by Investment Committee
$ 10 B+
Years of Alternatives Investing By Investment Committee
50 +
Transactions Closed By Investment Committee
200 +
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OPPORTUNITIES & RESOURCES

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Risks

ACOF1 is an open-ended investment vehicle managed by Adnate Capital, designed primarily to target private credit investments, including direct origination of loans and related debt instruments issued by privately held U.S. companies. Investing in ACOF1 involves substantial risk and is intended solely for sophisticated investors who understand and can accept significant illiquidity and volatility. Prospective investors should carefully review the risk factors outlined below and further detailed in our PPM:
  • An investment in ACOF1 is illiquid and should not be pursued if immediate or near-term access to invested capital may be necessary.
  • Investors should anticipate no secondary market for shares, and shares will not be listed on any securities exchange.
  • Withdrawals may, at times, be funded from offering proceeds or borrowings, potentially returning investors’ capital rather than generated income. This could reduce capital available for future investment after accounting for fees and expenses.
  • The use of leverage in our investment strategy magnifies potential investment returns and risks. Debt holders will have priority claims over equity investors in ACOF1, potentially exacerbating losses in asset values or net income during downturns.
  • Our focus on privately held companies means limited public information and greater vulnerability to economic volatility and operational inconsistencies.
  • For further details and to review our regulatory disclosures, please consult the company’s brochure filed with the US SEC available at the following link.

Legal Disclaimer

Adnate Capital does not represent or warrant, expressly or implicitly, the accuracy, completeness, fairness, or reliability of the information provided herein, including
information obtained from third-party sources. Adnate Capital expressly disclaims all responsibility or liability associated with reliance on this information and does not
undertake any obligation to update or revise any information contained herein.

Investment in ACOF1 is speculative and involves significant risks, including but not limited to limited operating history, volatile performance, the use of leverage, limited
liquidity without an expected secondary market, restrictions on transferability of interests, high fees and expenses, and substantial reliance on the investment judgment and
discretion of Adnate Capital. Investors should thoroughly evaluate all risks outlined in the applicable offering documents before investing. No assurances can be given that
investment objectives will be achieved. The investment strategies described herein should not be viewed as conservative, risk-free, or risk-averse. Economic, market, and other
external factors may lead ACOF1 to modify its investment objectives and guidelines, and investment losses are possible.

Past performance is not indicative nor a guarantee of future results.
This document may reference trademarks, service marks, or trade names of third-party entities. Such references do not imply any affiliation, sponsorship, endorsement, or association between these third-party entities and Adnate Capital.
Recipients of this material agree to observe all applicable laws and regulations concerning its use and distribution. This document is not intended for distribution or use by any person or entity in jurisdictions where such use would violate applicable laws or regulations. Additional information dissemination may also be subject to further jurisdictional restrictions.
Nothing in this disclaimer shall restrict or prohibit any individual from communicating directly with the U.S. Securities and Exchange Commission or other regulatory authorities concerning potential securities law violations.
For further details and to review our regulatory disclosures, please consult the company’s brochure filed with the SEC available at the following link.

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