There is a lot to like about the firm, but in other ways, it is still maturing. It earns an Average Parent rating.
Clayton DeGiacinto founded Axonic in 2010 after managing mortgage portfolios at Tower Research Capital and Goldman Sachs. Since then, the firm has focused on distinguishing itself within structured credit, an enormous but fragmented part of the fixed-income markets. Axonic offers only one mutual fund, one interval fund, and a handful of private vehicles, all with the same focus. As of January 2024, total assets under management were $4.3 billion, just over half of which was the mutual fund.
The firm's commitment to structured credit is also reflected in its investment in its large and growing team of investors. With 19 professionals (not counting DeGiacinto and his co-CIO Matt Weinstein) dedicated to structured credit, that's comparable to or bigger than many larger competitors. Substantial ongoing investments in technology, analytics, and data—integral to success in structured credit markets—also distinguish the firm.
In other ways, the firm is still maturing. Roughly half of the investment team joined in the past three years, and there was a bout of turnover in that group in 2022. Axonic is structured as a partnership with DeGiacinto, Weinstein, and head of business development Peter Carey as its managing partners. Eight principals also share in the firm’s ownership, although the program that awards equity to employees was only rolled out in 2023. The firm's ability to maintain an investment-led culture and retain talent, not just attract it, will be key to its future success.
United States