Sankaty Advisors, the credit affiliate of hedge fund firm Bain Capital, is to acquires the management contracts for four portfolios of collateralised loan obligations (CLOs) totalling USD1.6 billion of assets from Regiment Capital Advisors.
Financial terms of the deal have not been disclosed.
The management contracts to be transferred are for Cavalry CLO II, Ltd, Cavalry CLO III, Ltd, Cavalry CLO IV, Ltd, and Cavalry CLO V, Ltd, all of which contain underlying assets across a diverse array of industries. Completion of the transaction is expected by the end of 2015 upon receipt of certain necessary consents.
Sankaty is a seasoned CLO manager with a strong credit investment track record over 16 years. The firm has managed 27 CLOs since inception. Sankaty currently has 12 CLOs in the US and Europe under their management. The acquisition of these contracts will bring Sankaty’s CLO assets under management to USD7.8 billion, and the firm’s total AUM to USD28.7 billion.
“We are pleased to work with the team at Regiment, who we know well, to assume management responsibility for these CLO assets,” says Jonathan S Lavine (pictured), Managing Partner and Chief Investment Officer, Sankaty Advisors. “These assets are complementary to our existing CLO portfolios, which have been an important part of the Sankaty platform since 1999.”
“We are pleased to work with Sankaty on this transaction given their long experience managing and investing in collateralised loan portfolios,” says Thomas Sorbo, a Managing Director at Regiment Capital Advisors. “We were selective in picking a partner to manage these assets, and believe Sankaty will be a strong and valued steward of these assets going forward."
