3i adds €2 billion in AUM to its Debt Management business

3i 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.

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.