ZimCal Asset Management is an alternative investment firm focused on niche, illiquid and complex credit investment opportunities.
ZimCal is investment-agnostic with respect to industry, collateral and structure. The firm primarily targets private, credit investments below $10 million. ZimCal partners with both healthy and distressed borrowers or issuers, and provides customized solutions that meet their unique needs and circumstances.
What We Do
Partnering with Banks
The founder of ZimCal has partnered with over 120 banks through investments on both sides of the balance sheet. ZimCal has developed a deep network in the industry and fully understands the banking regulatory environment.
ZimCal's primary focus in the industry is acquiring moderately to severely distressed loans from lenders looking to exit a relationship. ZimCal is fair in pricing, efficient in its analysis and quick to respond.
ZimCal's secondary focus is acquiring or providing bank capital, primarily through investments in Trust Preferred Securities, subordinated debt and preferred equity
Partnering with Borrowers
The founder of ZimCal has lent to over 150 non-bank borrowers in a variety of industries including: business services, transportation, commercial real estate and manufacturing.
Whether the investment is through a loan acquisition in the secondary market or a new origination, ZimCal gives its borrowers the opportunity to thrive. ZimCal takes the time to understand each borrower’s unique circumstances and provides flexible, bespoke solutions. The goal is to align interests, with borrowers or other creditors, and mutually succeed.
Investment Philosophy
ZimCal was founded with the ethos of rigorous analysis, intellectual humility and fairness - with investors, employees and counterparties. Due to the illiquid nature of some of its investments, underwriting is extensive and ZimCal prices and structures defensively, particularly during times of exuberance. The firm seeks value when it can be found and is willing to walk away when it cannot.
Giving Back
ZimCal believes in giving back to the community, materially and immediately, through either time or financial resources. ZimCal believes that by supporting a culture of giving back, employee engagement increases and decisions become more long-term focused - positively impacting investment performance.
About
ZimCal was founded in 2015 by Stephen Hodges after working for over 12 years in banking and credit investing. Mr. Hodges has invested in: senior debt; second lien debt; subordinated debt; preferred equity; securitization vehicles/liquidations; and restructurings.
ZimCal currently operates through a joint venture with the family office arm of Blackburn Investment Management, Inc. - working closely with co-founders Greg McMillan and T.J. McMillan. Prior to founding Blackburn, Greg McMillan co-founded Värde Partners, a global alternative investment advisor focused on credit and value investing strategies that currently manages over $14 billion in assets.
Prior to ZimCal, Mr. Hodges was a Managing Director at O’Brien-Staley Partners (“OSP”), a value-oriented credit investment firm he joined at its inception and which currently has over $1 billion in AUM. Mr. Hodges underwrote and managed 65% of OSP's warehoused investments, the performance of which was used to help raise OSP’s $490 million inaugural fund. Prior to that he was at CarVal Investors, an $8 billion AUM credit fund where he reviewed and analyzed illiquid, private credit investments in Europe, North America and South America. Prior to that he spent 8 years in banking. Mr. Hodges received an MBA (with honors) from the University of Chicago Booth School of Business with a concentration in Analytical Finance, and a BSc in Economics from Centre College. Mr. Hodges was born and raised in Southern Africa.
