TFG Asset management, a diversified alternative asset manager that owns majority and minority private equity stakes in asset management companies, is broadening its structured credit investing business under Tetragon Credit Partners.
The business has evolved from a historic focus on primary CLO control equity to a broader series of offerings across the CLO capital structure. TFG Asset Management is part of Tetragon Financial Group Limited, a closed-ended investment company that is traded on Euronext in Amsterdam N.V. and on the Specialist Fund Segment of the main market of the London Stock Exchange.
The CLO investing business – historically called Tetragon Credit Income – has been an important part of TFG Asset Management’s alternative asset management platform since 2015. It already has two existing control-stake CLO equity vehicles – TCI II and TCI III – having raised in excess of USD780 million of commitments, and is focused on additional opportunities across CLO debt and non-control equity strategies which will continue as part of the broader Tetragon Credit Partners umbrella.
“Majority-stake CLO equity investing has been integral to Tetragon’s success for almost 15 years, and during this time Tetragon, together with TFG Asset Management, has emerged as one of the most active and experienced players in the CLO space,” says Reade Griffith, one of Tetragon’s founding Principals and TFG Asset Management’s Chief Investment Officer. “The broadening of Tetragon Credit Partners is a natural evolution of the existing business and the result of the team’s understanding of a dynamic marketplace with expanded opportunities across the entire CLO capital structure. We are excited for this next chapter in the business’ history and look forward to the new areas the team will explore as part of the expansion.”
The Tetragon Credit Partners investment team is led by three Principals: Scott Snell, Dagmara Michalczuk and Michael Pang. Michalczuk and Pang have been a central part of Tetragon’s CLO investing businesses since Tetragon’s initial public offering in 2007. Snell joined in 2018 from BlackRock, where he was a Managing Director and the co-head of its US CLO business.
Tetragon Credit Partners sits alongside TFG Asset Management’s other key asset management businesses, which include LCM (a specialist loan manager), Polygon (the manager of open-ended hedge funds and private equity vehicles), Equitix (an integrated infrastructure asset management and primary project platform), Hawke’s Point (a mining finance business) and its key strategic investment in BentallGreenOak (a real estate investment platform with over 750 institutional clients and USD46 billion of assets under management).
Tetragon Credit Partners invests in both externally-managed CLOs and in CLOs managed by TFG Asset Management’s LCM business. Tetragon, together with TFG Asset Management, has invested over USD2.4 billion in CLO equity, across 105 CLOs managed by 32 managers since inception.
