Precision in Action: Empowering smarter investment decisions with 2E Capital

When veteran credit investor Vic Danh left a multibillion-dollar fund to build 2E Capital Partners, he wanted to optimize for agility. 2E launched with a lean team and a clear thesis: identify and act on performing, stressed and post-reorganization situations where debt continues to pay interest while trading at distressed valuations. Identifying those kinds of opportunities calls for a combination of nuanced number work and real-world market insights, making Octus a natural partner as they launched.

Streamlining Opportunity Analysis

Every day, 2E analysts rely on Octus to uncover what Vic calls his “three buckets of opportunity.” In his words, “There’s really three buckets of opportunities where we’re finding good risk/rewards:

• Companies that have emerged from Chapter 11
• Companies about to go through or completed a liability-management exercises
• Any loan or bond that suddenly yields above ten percent in order to cast a wide net for all potential opportunities.”

The list can add a dozen names overnight, yet each demands immediate modelling and narrative vetting.

Without Octus, the workflow tends to bog down quickly. Someone would need to manually key data from filings into Excel, capital structures would have to be mapped line by line and wait for quarterly investor calls to gain management insights—a process that could take hours or even days before determining whether the risk justified the potential return.

I wouldn’t have ready access to management or their thoughts without help, where now I can with the Fundamentals product.

Vic underscores the importance of understanding management’s perspective on their situation, how they articulate it, and how these explanations evolve. Without a tool like Octus, accessing contemporaneous transcripts of management statements would be nearly impossible. Vic explains the bottleneck bluntly: “I wouldn’t have ready access to management or their thoughts without help, where now I can with the Fundamentals product.” Without these contemporaneous transcripts, Vic notes that it’s harder to tell whether a missed earnings guide was a blip or the start of deterioration.

Strong, Risk-adjusted Performance

Octus Credit Intelligence and Fundamentals Data offers a solution to 2E’s challenges. Financial histories, capital structures, covenant details now appear in seconds, which means that analysts don’t have to waste hours plugging numbers into spreadsheets. Instead, they can dive straight into testing. Workflows now include weekly check-ins to monitor LMEs, and fresh entries are routed to the appropriate analyst at market speed.

The easy availability of management transcripts also adds critical context to the data. Vic explains: “The access to the middle-market transcripts has made it a lot easier for me to get up to speed on a lot of situations and to go back through time to see how narratives pivot. That context is a tool I use to pull together a mosaic and form the best picture I can of an opportunity.” When a chief executive blames supply chains one quarter and pricing the next, 2E can spot the drift immediately and adjust their risk assessment.

With Octus, speed improves alongside insight. Research cycles that once spanned days can wrap in a single afternoon, restoring capacity for field diligence and peer checks. Most importantly, Octus keeps the firm competitive. “Honestly, without having Octus, you’re a step behind the competition,” Vic notes, a verdict he has gathered from experience. With it, 2E keeps pace with much larger entities.

Honestly, without having Octus, you’re a step behind the competition

Vic highlights the steady income 2E secures from performing-stressed credit during turnarounds. “You’re getting paid to wait for the catalyst or for the business to recover,” he says. Octus contributes to the process that allows 2E to lock in those returns early and exit once the thesis plays out, helping in the mission of delivering strong, risk-adjusted performance. Octus empowers 2E to follow that mission with precision, turning raw data into a compass directing to better outcomes for all.

Discover Octus credit market intel and data

 

Credit Intelligence

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Insights across the entire sub-investment grade universe

• Real-time credit lifecycle coverage
• Expert-backed legal and financial analysis
• Daily updates on 6,600+ companies globally

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Fundamentals Data

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Get critical financial data on ~3,000 issuers for informed investment decisions.

• Analyze 1,000+ leveraged finance deals
• Access over 10 years of historical financial data
• Compare companies by multiple financial metrics

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