ORIX USA agrees MBO at Mariner Investment Group
ORIX Corporation USA (ORIX USA) is to sell Mariner Investment Group (Mariner) to Curtis Arledge, Mariner Chairman and CEO, William Michaelcheck, Mariner Founder, Partner and Co-Chief Investment Officer and other senior members of the firm.
The transaction aligns with ORIX USA’s objective to consolidate the company’s investment capital and asset management strategy in the US, with a focus on alternative assets, including private credit, real estate and private equity. As an independent company, Mariner will continue to provide its investors with fixed income relative value and credit strategies in the public and private markets.
As part of the transaction, ORIX USA will retain Mariner’s leveraged credit business, originally launched at ORIX USA and co-led by David Martin and Erik Gunnerson. As of 31 March, 2020, the team has approximately USD4.6 billion of assets under management primarily in broadly syndicated loans and structured credit investments across eight collateralis ed loan obligations (CLOs) and multiple separately managed accounts. ORIX USA has made significant investments in the leveraged credit business, and this transaction will enable the company to continue taking advantage of opportunities in broadly syndicated loans and CLOs.
Mariner will continue to manage all of its other investment strategies. After closing, the Mariner business will be 100 percent employee-owned and continue to operate under the Mariner name.
"This transaction will allow us to further hone the asset management solutions we provide our clients,” says Terry Suzuki, CEO and President of ORIX USA. “We appreciate everything that Curtis, Bill and the entire Mariner team have done over the past decade in their partnership with ORIX USA, and we wish them well in their future endeavours. We are also pleased to have Mariner’s leveraged credit business at ORIX USA, where we know it will build on its years of success in the CLO market.”
“We are excited to begin our journey as an independent company and to build on the continued success of our investment strategies,” says Arledge. “This opportunity positions us well to capitalise on the evolving investment landscape for our clients. We have enjoyed being part of the ORIX USA family and are confident they will continue to thrive.”
ORIX USA will use an existing affiliated registered investment adviser to house the Leveraged Credit business, as well as other potential asset management strategies in the future.
In addition, Arledge has stepped down from his role as the head of ORIX USA’s asset management business. Art Mbanefo, Senior Managing Director, Chief Investment Officer and Head of Principal Business of ORIX USA, has assumed that role and is responsible for leading the investment and asset allocation strategy across the company’s finance, merchant banking and asset management activities.