Sankaty Advisors, the global credit affiliate of Bain Capital, and Regiment Capital Advisors, a Boston-based investment manager, today announced the signing of a definitive agreement for Sankaty to acquire the management contracts for four portfolios of collateralized loan obligations (CLOs) totaling $1.6 billion of assets from Regiment. Financial terms were not 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 U.S. and Europe under their management. The acquisition of these contracts will bring Sankaty’s CLO assets under management to $7.8 billion, and the firm’s total AUM to $28.7 billion.
“We are pleased to work with the team at Regiment, who we know well, to assume management responsibility for these CLO assets,” said Jonathan S. Lavine, 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 collateralized loan portfolios,” said 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."
Berkshire Capital Securities, WilmerHale and Dechert LLP are serving as advisors to Regiment. Ropes & Gray LLP is acting as legal advisor to Sankaty.
Sankaty Advisors is the global credit affiliate of Bain Capital and one of the world’s leading private managers of fixed income and credit instruments. Founded in 1998 and now managing more than $26 billion of assets as of June 30, 2015, Sankaty has an integrated team of more than 230 people that enables the firm to invest up and down the capital structure and to conduct rigorous, independent analysis of thousands of corporate issuers. Sankaty invests in a wide variety of securities and investments globally, including leveraged loans, high-yield bonds, distressed and stressed debt, mezzanine debt, structured products, real estate and equities.
Regiment Capital Advisors is a Boston-based investment manager formed in 1999. The firm focuses on managing fixed income credit-related strategies, including high yield hedge funds and structured products. Regiment’s investors include a broad range of leading U.S. endowments, foundations, health care and financial institutions, state and corporate pension plans, and family offices.