Pretium Partners has acquired the investment management business of Latigo, a fund manager that specialises in event-driven investing with strategies including distressed securities, special situations and long/short credit and equity investing.Latigo co-founders David Ford and David Sabath are joining Pretium as Senior Managing Directors, members of the Executive Committee and remain as Portfolio Managers of Latigo’s investment vehicles, effective immediately. Additional investment professionals as well as several key operational members of the Latigo team are also joining Pretium. Terms of the transaction were not disclosed.
Founded in 2005, Latigo is a fund manager that specialises in event-driven investment opportunities. Strategies include distressed securities, special situations and long/short credit and equity investing. The Latigo team will be joining Pretium’s corporate & structured credit business, which currently manages seven CLOs and several investment vehicles for structured credit opportunities.
Pretium is an alternative investment management firm focused on residential real estate, residential credit and corporate & structured credit with more than USD14 billion in assets under management. Pretium has made a significant investment in the corporate credit investment management arena through the acquisition of Valcour Capital Management, the hiring of several senior investment professionals, and the multi-year development of Pretium LATTICETM, a proprietary analytical toolkit.
“We are excited to complete this strategic acquisition, which is a natural extension of our existing credit strategies,” says Donald Mullen, CEO and founder of Pretium. “Building out distressed credit investment capabilities has been a priority, and we are excited to welcome the Latigo team. In keeping with our fundamental tenants of investing during periods of paradigm shifts and market dislocations, we believe there will be a significant opportunity in the corporate credit markets.”
Ford says: “Pretium has distinguished itself as a thought leader in the asset management space and we are thrilled to partner with them as we enter into this next stage of our evolution. Over the past fifteen years, we have remained focused on generating value for our investors while remaining true to both our culture and our investment process. Pretium shares our philosophy and approach to investing and represents an ideal partner for Latigo and its LPs.”
“Combining our team and process with Pretium’s existing corporate & structured credit capabilities will provide additional avenues for idea generation and investment opportunities,” adds Sabath. “We look forward to working closely with the Pretium team and to leveraging these new resources to execute on our strategy and deliver strong returns for our LPs.”
Sidley Austin LLP and Hunton Andrews Kirth LLP served as legal advisors on the transaction for Pretium. Schulte Roth & Zabel LLP served as legal advisor for Latigo.
