Black Diamond Capital Management

Black Diamond Capital Management advises and manages pooled investment vehicles on behalf of institutional and high‑net‑worth investors, including hedge funds, closed‑end opportunity and strategic capital funds, and a series of collateralized loan obligation (CLO) and CDO vehicles. The firm provides discretionary portfolio and collateral management services to affiliated fund entities rather than to individual retail clients.

Its investment approach is credit‑focused and opportunistic, concentrating on syndicated and middle‑market loans, asset‑based financings, distressed and below‑investment‑grade debt, and select equity positions, guided by fundamental credit research, collateral analysis and active engagement in restructurings. Black Diamond routinely employs leverage and structured financing techniques (including CLOs and warehousing), and may pursue activist or control-oriented positions in workout situations when consistent with a client’s mandate.

The brochure discloses a number of features that distinguish the firm from many peers: it serves as collateral manager for a multi‑year series of CLOs and related CDO vehicles and operates with a network of affiliated entities, including a commercial finance origination affiliate (BDCF) and service arrangements with GSC‑related entities, arrangements the firm identifies and addresses as potential conflicts. The firm also documents use of third‑party ratings in its structured financings (noting “ratings agency expenses” among fund operating costs) and discloses how those outside ratings and affiliated origination relationships factor into fund governance and expense allocations.