Elmrock Capital is a niche investment firm investing in new and emerging structured financial assets.
Elmrock and its affiliates acquire equity positions in structured financial transactions in association with regulated financial institutions, often employing derivatives and other innovative financial instruments. Elmrock utilizes various mechanisms to minimize risk, such as overcollateralization, diversification, loss-capping provisions, and covenant and trigger protections.
Elmrock has been involved in structured financial products since 1987 and has invested hundreds of millions of dollars in these transactions. During this period, investments in commercial paper conduits, sale-leaseback transactions, leveraged bank loan trusts have provided above-market returns to its principals. Elmrock has invested with, among others, Citibank, JP Morgan, Chase, Toronto-Dominion Bank, Shell Oil Company, Dow Chemical Company, Bausch & Lomb, Monsanto, Centerior Energy and Ohio Edison.
As the equity owner in these transactions, Elmrock usually assumes many financial management functions, including tax and regulatory reporting. Elmrock’s management team has more than 50 years of experience in levered structures and has provided efficient management and accounting services for its transactions and their co-venturers. Elmrock also has used its extensive knowledge of the debt and equity markets to profit from overlooked or out of favor investment tranches, as well as distressed debt opportunities.