INVESTMENT PHILOSOPHY

Our investment philosophy rests on three pillars

01

Capital Preservation

Endurance prioritizes capital preservation above all other objectives. We believe the return of capital should take precedence over the return on capital.

02

Long-Term Consistency

We believe that successful investing requires consistent, above-average performance. We aim to achieve a high batting average by consistently hitting doubles. A mix of home runs and strike-outs is not acceptable to us.

03

Alignment of Interest

Endurance’s fee structure rewards investment performance—not accumulating assets under the management at the expense of investor returns. Our firm’s principals maintain significant investments alongside our investors.

INVESTMENT PROCESS

We undertake a rigorous evaluation process for all of our investments, including:

  • Developing a network of origination partners and potential borrowers to generate deal flow

  • Leveraging our structuring expertise to design bespoke capital solutions that generate value for origination partners/borrowers whilst delivering attractive, risk-adjusted returns for our investors

  • Engaging in continuous dialogue with origination partners and borrowers to identify additional credit extension opportunities

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Market Analysis

We analyze key metrics such as:

  • Sectors with structural inefficiencies

  • Origination platforms with insufficient access to capital

We next evaluate important metrics such as:

  • Economic environment

  • Assets’ historical performance

  • Investment risk-return profile

This process enhances our sector/asset class sourcing channels and relationships.

Origination

Our origination process involves:

Analysis

Thorough analysis is key to our success, and it includes:

  • Conducting due diligence on origination partners’/borrowers’ business and operations

  • Identifying a base case return profile and stress test for adverse scenarios

  • Negotiating, issuing and executing proposals for capital solution or investment

Execution

Once our analysis is complete, it is time to execute the transaction, which includes:

Performance Monitoring

We closely monitor our portfolio performance through ongoing steps such as:

  • Creating an initial investment proposal for discussion with the firm’s Investment Committee

  • Conducting Investment Committee review, which assesses the opportunity on a stand-alone basis as well as its impact on the broader portfolio and risk posture

  • Negotiating and executing transaction documents

  • Continually assessing the economic environment for portfolio-level allocations between sectors and asset classes

  • Dynamically evaluating the performance of portfolio sectors, origination partners, and individual assets

  • Maintaining regular performance dialogue with all origination partners and borrowers to adjust capital allocations as appropriate

  • Adjusting our portfolio based on realized and projected risk-return profiles