Tom Finke is used to juggling multiple responsibilities. Not only at the office, with eight CLOs currently under management, but also at home keeping track of five kids. Though he is highly organized during the week, come Friday afternoon, Finke turns the reigns over to his wife, Heather, who arranges his soccer, basketball, baseball, birthday party and play date carpool agenda. And don't worry about his personal health. "With five kids there is no lack of physical activity," he said.
During the week, Finke focuses on raising equity and monitoring his current interests. As managing director and head of Babson Capital's bank loan team, Finke's general philosophy on loan investments rests on fundamental credit analysis - not just upfront but on an ongoing basis. And these principles start with a good credit discipline and a well diversified portfolio of loans, according to Finke. "You need to have solid credit underwriting and disciplined credit monitoring," he said. "Most deals look pretty good on the day they are syndicated. It's three, six, nine months down the road that things happen." And with defaults almost inevitable, well-diversified investments assure that no one position is going to take you down, Finke said. "You don't get rewarded for overweighting loans. You are just buying a piece of paper at par and getting a coupon. These positions typically do not trade to 110 (percent of par)."