Capturing the
regulatory capital premium
Whitecroft Capital Management is an alternative asset management firm founded in London in 2016, with a subsidiary in Copenhagen. The firm is a dedicated specialist in bank risk sharing investments, with the investment team having been at the origins of the asset class nearly two decades ago.
Bank risk sharing involves banks transferring the economic risk of a portion of their existing loan portfolios to third-party investors, in exchange for capital relief under Basel III and Basel IV regulatory requirements. Because banks need this capital relief on an ongoing basis — and because the eligible investor base is small — banks must offer a meaningful premium over what the underlying credit risk would otherwise warrant. This regulatory premium is structural and persistent, not cyclical.
The strategy
Whitecroft participates in bank risk sharing transactions where banks transfer economic exposure to diversified pools of performing loans that remain on their balance sheets. The underlying assets are typically core bank lending: corporate loans, SME facilities, trade finance and mortgage portfolios — predominantly investment-grade quality borrowers. The fund provides access to a granular pool of exposures across multiple banks.
Two structural advantages
Origination edge
The team has been at the origins of the bank risk sharing asset class for nearly two decades, giving Whitecroft access to high-quality transactions.
Structural supply
The supply of risk sharing transactions is driven by regulatory requirements, not credit cycles. Banks need capital relief regardless of market conditions, creating a persistent and growing opportunity set.
Team and infrastructure
Whitecroft was founded by Michael Sandigursky (CIO) and Anders Larsen (CEO). The team has nearly two decades of experience in bank capital transactions and stood at the origins of the asset class. Whitecroft is regulated by the Financial Conduct Authority in the UK and Whitecroft's Copenhagen subsidiary, Whitecroft Capital Fondsmæglerselskab A/S, is authorised by the Danish Financial Supervisory Authority.
Award highlights
Whitecroft's Core Bank Risk Sharing Fund was announced as winner of the HFM European Performance 2023 Award in the Credit Long/Short category. The firm has been awarded Best Risk Sharing Investment Strategy (UK) by CFI.co.
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