Sector developments and company hires

ESG impact disclosure RTS inked
The three European Supervisory Authorities (ESAs) have jointly submitted to the European Commission draft RTS on ESG impact disclosures for STS securitisations under the Securitisation Regulation (SECR). The amended SECR introduced new optional disclosure provisions related to the principal adverse impacts (PAIs) on sustainability factors of the assets financed by the underlying exposures for both non-ABCP traditional STS securitisations and on-balance sheet STS securitisations.

Importantly, the draft RTS are not intended to create a framework for ‘sustainable securitisation’. Rather, the technical standards aim to be consistent with those developed under the SFDR - which distinguish between the publication of available information on mandatory indicators (for example, energy efficiency) and on additional indicators (for example, emissions), whereby originators may select at least one social or governance and at least one environmental indicator.    

The key proposals included in the technical standards specify ESG disclosures applying to STS securitisations where the underlying exposures are residential loans and auto loans and leases. The European Commission is expected to endorse the RTS within three months of their publication.

In other news…

Apollo builds venture finance platform
Cadma Capital Partners has named Jon Beizer and Josh Brody as its ceo and president respectively. Recently established by Apollo-affiliated entities, Cadma provides asset-backed financing to venture- and growth-lenders, high-growth companies and financial sponsors.

Beizer and Brody both join Cadma from Western Technology Investment, where they were investment partners. As ceo and president, they will be responsible for the continued build-out of the Cadma franchise. By lending against assets and contracted cashflows, and in consultation with other Apollo-related platforms - including ATLAS SP, Redding Ridge and MidCap - Cadma can help its clients access cost-effective capital while providing investors with downside protected opportunities.

Cadma is headquartered in New York, with professionals in New York and San Francisco. The firm expects to continue building out its team commensurate with its growth plans.

ArrowMark closes fourth reg cap fund
ArrowMark Partners has announced the close of its fourth dedicated regulatory capital relief fund vintage, Global Opportunity Fund IV, raising US$1.1bn of capital commitments in the commingled fund and related fund-of-one vehicles from a diverse range of investors. In line with the prior vintages, Fund IV seeks to generate income-driven returns by investing in a diversified portfolio of regulatory capital relief securities. As one of the largest and longest-tenured investors in the asset class, ArrowMark has invested in 89 distinct regulatory capital relief transactions, representing approximately US$6.5bn of original par amount over the last 13 years.

EMEA
Jason O’Brien has been named md, head of EMEA at ATLAS SP Partners, following Apollo’s acquisition of Credit Suisse’s securitised products group and its subsequent rebranding (SCI 9 February). O’Brien was formerly md, head of European origination and syndication - SP finance at Credit Suisse, which he joined in July 2011 as head of European securitised product sales. Before that, he worked at Jefferies, RBS and Barclays.