Global fixed-income manager Western Asset has taken a minority ownership stake in Flat Rock Global, a new alternative asset manager focused on developing yield-driven investment strategies in asset classes under-served by the mainstream banking sector.
John Thomson of Thomson Equity also invested alongside Western Asset.
The investment supports Flat Rock Global’s investment strategies, including their initial fund, Flat Rock Capital Corp, a business development company focused on investing in first lien, floating rate debt of middle market companies.
“We are pleased to partner with Western Asset, one of world’s premier asset managers,” says Robert K Grunewald (pictured), CEO & Founder of Flat Rock Global. “We believe their successful track record of long-term, fundamental, value investing is consistent with our strategy.”
Grunewald sees opportunity for alternative debt providers. “With banks receding from middle market lending, private lenders will benefit from demand for growth capital,” he says.
Flat Rock Global exclusively offers its funds through registered investment advisors (RIAs), family offices and institutional investors with a single institutional style share class.
“We believe Flat Rock Global offers investors access to intriguing, yield-driven asset classes, most notably, Flat Rock Capital Corp’s focus on investing in the debt of middle market companies,” says James W Hirschmann, CEO of Western Asset. “We find their focus on the growing middle market lending sector, with its favorable risk/return profile, an appealing investment strategy.”
