Shenkman Capital continues to build on its strength in leveraged finance, which underpins its Above Average Parent rating.
The firm’s leadership transition, nearly a decade in the making, culminated in July 2026, when CIO Justin Slatky succeeded founder Mark Shenkman as president and assumed full operational control of the firm. Shenkman stepped back to serve as executive chairman. The move came as no surprise, as the transition had unfolded in carefully planned phases. Slatky joined the firm in 2011 after leading Goldman Sachs’ distressed-investing platform and was named co-CIO alongside Shenkman in 2016, allowing Shenkman to reduce his day-to-day involvement. Slatky then became sole CIO in 2020. This thoughtful and orderly transition should ensure continuity within the firm’s senior leadership.
The firm remains privately owned, with Shenkman and Slatky, who is also Shenkman’s stepson, holding the majority of its equity. Slatky is expected to assume Shenkman’s voting rights if Shenkman becomes unable to exercise them. Senior leaders hold the remaining ownership interests, which support the retention of key decision-makers. Compensation incentives further reinforce the firm’s investor-focused culture. Risk-adjusted performance plays a prominent role in employee evaluations, aligning incentives with the firm’s long-standing defensive investment approach.
Shenkman continues to grow responsibly within its core competency. Assets under management reached a record USD 37.7 billion in June 2026, up from USD 33.1 billion two years earlier. US high-yield and multi-asset credit strategies, which invest across high-yield bonds, bank loans, and convertibles, accounted for over 70% of the firm’s AUM. The multi-asset credit business has expanded significantly in recent years, while the firm views private credit and collateralized bond obligations as its primary areas for future growth. It partnered with J.P. Morgan as a co-lender to middle-market borrowers and launched its first private credit drawdown fund in 2024, which had attracted more than USD 1.2 billion as of September 2026. Through commonly controlled affiliate Romark Credit Advisors, the firm is also expanding its CBO issuance by using a leveraged version of its flagship short-duration high-yield strategy.
United States