Annaly Capital Management has announced its entry into an agreement to sell its middle market lending portfolio to the global alternative investment manager, Ares Capital Management. The US$2.4bn transaction represents Annaly’s middle market assets across the balance sheet of primarily first and second lien loans in defensive, counter-cyclical industries, as well as assets managed for third parties. The transaction offers a positive outcome for Annaly shareholders and is expected to complete with the transfer of the portfolio by the end of the Q2 2022. The transaction was supported by Wells Fargo Securities acting as financial advisors, with Hunton Andrews Kurth and Latham & Watkins serving as legal advisors to Annaly and Ares, respectfully.

In other news….

CIFC Asset Management has announced the launch of a new mutual fund in partnership with IBI Investment House for the investment in CLOs. The IBI CLO Strategies Fund will enhance exposure to CLOs for Israeli investors after gaining greater prominence for demonstrating resiliency in recent years. Tzvika Katzman, senior investment manager at IBI, will serve as the Fund’s ceo having worked alongside CIFC md and CLO specialist, Jason Ziegler, to structure the fund. Going forward, CFIC mds and respective heads of structured credit investment and capital markets, Jay Huang and Matthew Andrews, will serve as co-portfolio managers for the fund.