Conning is to acquire Octagon Credit Investors, a US–based manager of specialised credit asset classes with expertise in collateralised loan obligations (CLOs), bank loans and high yield bonds.
Based in New York, Octagon has more than 20 years of experience investing in below-investment grade markets, allowing Conning to expand its best-of-breed capabilities for clients globally. Octagon manages USD12.8 billion in assets through its CLOs, separate accounts and commingled fund offerings on behalf of insurance companies, banks, pension funds and asset managers. Andy Gordon will continue as Octagon’s Chief Executive Officer, and the firm’s existing investment and business teams will remain in place.
“This transaction is a natural extension of Conning’s capabilities and provides our clients with access to specialised floating and fixed income asset classes that have performed well through various market cycles. Conning and Octagon share a similar culture and investment philosophy that will benefit both firms and our clients,” says Woody Bradford (pictured), Chairman and Chief Executive Officer of Conning. “We look forward to partnering with Andy and the experienced Octagon team in pursuing new opportunities globally.”
Following the closing of the transaction, Octagon will operate as a subsidiary of Conning and be governed by its own Board of Directors. Collectively, the Octagon organisation brings an extensive network of long-standing relationships, strong investment performance results, a focus on deep fundamental credit investing and a track record of building a world-class investment franchise.
"We are excited to join a leading, highly respected asset management firm that shares Octagon's collaborative culture, commitment to growth, and dedication to serving its clients," says Gordon. "Partnering with Conning will not only provide Octagon with additional capital to meet regulatory risk retention requirements and strengthen our position as a leading US CLO manager, but will also help us develop and deliver a broader range of investment solutions to our collective global investor base. We look forward to working with Woody and the Conning team to position our business for continued growth."
