Debt Management (‘3iDM’) has signed agreements to acquire seven European Collateralised Loan Obligation (‘CLO’) management contracts from Invesco, a global investment manager. The seven contracts will add €2.0 billion of assets under management.3i
This transformational acquisition for 3iDM increases its assets under
management (‘AUM’) to €6.0 billion, consolidating its position as one of
the leaders in the European debt management space. The transaction
builds on the company’s strategy to grow its business and to take
advantage of attractive opportunities, both in Europe and North America.
The seven CLOs are primarily invested in sub-investment grade debt issued by European companies.
Jeremy Ghose, Managing Partner and 3iDM CEO, commented: “This
transaction reinforces our commitment to growing our debt management
business and ensures we are well-placed to capitalise on future
opportunities. We continue our search for a US platform in line with our
strategy of playing a leading part in the consolidation of the debt
market and creating a global credit platform of size.”
3i Debt Management is one of Europe’s leading debt management businesses
with pro forma AUM of €6.0 billion and a team of 30 people based in
London. Following the acquisition it will manage a total of 17 funds
across CLOs, private equity fund of funds, mezzanine, managed accounts as well as the recently launched credit opportunity fund Palace Street I.
3iDM’s advisors were Key Capital (M&A), Clifford Chance (legal),
KPMG (financial and tax). Invesco was advised by StormHarbour
Securities (M&A) and Cadwalader, Wickersham & Taft (legal).
The transaction is subject to various third party consents.