Former BlueBay Private Debt business launches as Arcmont Asset Management
Arcmont Asset Management (Arcmont) has launched as an independent private debt business following the completion of its separation from BlueBay Asset Management (BlueBay).
Arcmont currently manages institutional assets of over EUR13 billion and is focused on delivering flexible capital solutions to businesses across Europe. The company is employee owned and managed and is backed by a minority investment from Dyal Capital Partners (Dyal), a specialist in investments in alternative asset managers globally.
Arcmont also announces the launch of its newly-formed Capital Solutions strategy with the hiring from January 2020 of two senior investment professionals, David Brooks and Alice Cavalier, who will be joining as partners from Bain Capital Credit and PIMCO respectively. They will jointly lead Arcmont’s newly-formed Capital Solutions strategy that will seek to provide flexible capital to companies requiring constructive solutions during the next cyclical downturn. In so doing, they will be leveraging their extensive restructuring expertise and Arcmont’s excellent ongoing relationships with private equity sponsors, management teams and advisers.
This new offering will complement Arcmont’s existing performing Direct Lending and Senior Loan strategies and help meet the needs of businesses across the investment and economic cycle while aiming to deliver secure, risk-adjusted returns in a closed-end fund format.
The new hires bring the Arcmont team to over 50 people with a strong track record and experience of investing in companies through multiple phases of the credit cycle. The team will continue to be led by Anthony Fobel who has been at the helm since founding the Private Debt business at BlueBay in 2011 and an investment team with on average over 12 years’ experience, covering all major countries in Europe.
Anthony Fobel, CEO of Arcmont Asset Management, says: “We are delighted to launch as an independent, employee-owned asset manager, which will better align the interests of our team and investors, whilst enabling us to incentivise, retain and attract leading talent in our industry. This move represents a natural evolution for our business, which has grown to be a market-leading provider of private debt products in Europe, with a strong team, deep relationships and considerable experience investing in the credit markets.
“The hiring of David Brooks and Alice Cavalier to run our Capital Solutions business reflects the continued expansion of our capabilities and will allow us to provide a greater range of financing solutions to both performing and underperforming companies across Europe, tailored to the needs of investor portfolios in all economic environments.”
David Brooks who will be Co-Head of the Capital Solutions strategy, adds: “Arcmont is already a leading private debt player in Europe and Alice Cavalier and I look forward to joining the team and helping to build out the new Capital Solutions strategy. As we look ahead to the next cyclical downturn, we believe the timing is right to develop this strategy, which focuses on providing constructive, patient capital to underperforming businesses affected by the turning credit cycle, to offer them additional time and expertise to recover and grow their businesses. This strategy is complementary for Arcmont and will leverage its excellent relationships with private equity sponsors, management teams, advisers and other lenders, whilst also broadening our investor offering to meet the needs of credit portfolios in more difficult economic environments.”
Michael Rees, Head of Dyal Capital Partners, says: “We look forward to partnering with the Arcmont team and the very strong business they have built. As a leader in European private debt, Arcmont has a long and successful track record and is well positioned to capitalise on the next stage of the credit cycle. This investment provides Arcmont with a new independence that fits its entrepreneurial and innovative culture, and we will enthusiastically support Anthony and the team as they continue to deliver results for their investors and partners.”