Company hires and sector developments

Acquisition

Priority Income Fund has completed its acquisition of Stira Alcentra Global Credit Fund (SAGC), after the latter’s shareholders approved the transaction at a special meeting on 6 May. The exchange ratio at which common shares of SAGC were converted to common shares of Priority was based on the applicable class of SAGC shares and Priority’s most recent estimated net asset value per share of US$13.70. Priority is managed by a team of investment professionals from Prospect Capital Management and primarily invests in senior secured loans and CLOs.

CDO manager transfer

Dock Street Capital Management has replaced State Street Global Advisors as investment manager to Diogenes CDO I.  Moody's has determined that the appointment will not at this time impact the ratings of any notes issued by the ABS CDO. (Further CDO manager transfers can be viewed on SCI’s database.)

Joint venture

Barings BDC has entered into a joint venture with South Carolina Retirement Systems Group Trust (SCRS) to create and co-manage Jocassee Partners, which will invest in a highly diversified asset mix, including middle market loans, private debt investments, structured products and real estate debt. Barings BDC and SCRS have committed to initially provide US$50m and US$500m respectively of equity capital to Jocassee. Equity contributions will be called from each member on a pro-rata basis, based on their equity commitments.

Private placement facility

Freddie Mac has introduced a new offering designed to help financial institutions with less than US$10bn in assets access additional liquidity for the financing of affordable housing. The newly created Private Placement PC Swap execution (PPP) facility – a variant of Freddie Mac’s 55-day Multifamily PC Swap – enables a lender to swap a pool of loans backed by affordable properties for Freddie Mac Multifamily PCs backed by the loans, which can then be sold to investors, returning liquidity to the financial institution. IMPACT Community Capital was the first investment manager to benefit from the facility, swapping 77 loans totaling nearly US$141m for Multi PCs. All the properties involved in the transaction received financing through 9% Low-Income Housing Tax Credits and approximately 3,400 of the units financed are affordable to low-income residents, earning 50% or less of area median income.

Securitisation venture between EIB Group and CaixaBank

The EIB and the EIF has provided CaixaBank with a €100m guarantee for an existing loan portfolio, which will enable CaixaBank to mobilise up to €600m of additional financing for Spanish SMEs and mid-caps. This is the first guarantee for a mezzanine tranche of a SME loan securitisation operation, in which the EIB, the EIF and CaixaBank are participating together in Spain. This is in conjunction with a digitalisation project between CaixaBank and the EIB.

Senior global hires announced

AGL Credit Management (AGL), has hired Wynne Comer as coo, effective immediately. In the new role, Comer will manage key functional areas, including leading the roll out of new products, structuring related financings and managing the firm's infrastructure, finance and administrative functions. She will report to Peter Gleysteen, ceo and cio at the firm. Comer was previously md and global head of CLO primary at Bank of America Merrill Lynch, where she led a team across New York and London.

GoldenTree Asset Management has announced that Christopher Hayward has been named partner, president and member of the executive committee. Hayward succeeds Robert Matza who is retiring. He brings over 27 years of experience in the investment management industry to GoldenTree and was previously mp and co-head of JPMorgan Global Alternatives and, within this group, mp and coo of Highbridge Capital Management.

Intermediate Capital Group (ICG) has hired Alan Ross as md, special situations investments. He joins from Cerberus Capital where he worked was svp with a focus on sourcing and executing credit, special situations and distressed debt opportunities for more than a decade. He will report to Zak Summerscale, global head of credit fund management.

Ostrum Asset Management has appointed Brian Yorke as US head of structured and loan credit management, headquartered in New York. His remit will include CLO issuance, managed accounts, fund platforms and related credit solutions for institutional clients. Yorke will report to Ibrahima Kobar, deputy ceo and global cio of Ostrum AM, and was most recently head of trading, head of global performing credit portfolio management and portfolio manager for Bardin Hill Investment Partners. Prior to that, he worked at Seix Advisors and Prudential Investment Management.

Sun Life Investment Management has appointed Elaad Keren as senior md and head of mid markets lending, responsible for sourcing and approving investment opportunities within North America. Reporting to senior md and head of private fixed income Candy Shaw, Keren will lead a team of 18 investment professionals, with an expanded mandate that includes private securitisation. Concurrently, Jeff Mayer will take on a broader role the firm as md, head of private securitisation finance for North America, reporting to Keren. Keren replaces Keith Cressman, who will be retiring effective 1 September, and was previously with CWB Maxium Financial.

Thorofare Capital has hired Denis Barreto as director of credit, bringing over 12 years of institutional experience underwriting commercial real estate investments, including structured finance transactions. He was previously a director of investments at RealtyShares and a vp in the Miami office of Fifteen Group. Barreto has also held positions with Metro 1/Dragon Global, Jamestown Properties and Holliday, Fenoglio & Fowler.