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Laxman Pai, Opalesque Asia: Carlyle Group, the American multinational private equity, alternative asset management, and financial services corporation, is acquiring the portfolio of assets from credit manager CBAM Partners, an affiliate of Eldridge, in a $787 million in a deal that would make the buyout firm the biggest manager of collateralized loan obligations (CLOs).
The deal is expected to close in the first half of 2022.
Carlyle is paying $787.2 million to buy Todd Boehly's investment shop, using a combination of $615 million in cash from Carlyle's balance sheet and approximately 4.2 million newly issued common shares, according to a press release from the global investment firm with $293 billion of asset.
With the transaction, Carlyle is slated to hold approximately $48 billion of CLO assets under management. CLOs purchase leveraged loans and repackage them into bonds of varying risk and reward. Carlyle is also acquiring other CBAM assets across private credit.
Mark Jenkins, Head of Global Credit at Carlyle, said, "Acquiring these assets from CBAM adds scale to our already strong CLO business and creates shareholder value on day one by delivering a substantial and accretive increase in Fee Related Earnings. This transaction builds on our strong momentum as we continue growing the global credit platform in line with our strategic plan."
Lauren Basmadjian, Co-Head of Liquid Credit and Head of US Loans & Structured Credit at Carlyle, said, "We have ...................... To view our full article Click here
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