Healthcare of Ontario Pension Plan (HOOPP) has formed a strategic partnership with CIFC LLC, a U.S. private debt manager specializing in U.S. corporate and structured credit strategies. HOOPP has committed a “substantial” undisclosed amount to a new risk retention vehicle, CIFC CLO Strategic Partners II (CMOA II), which will purchase the majority equity positions of CIFC’s new issue collateralized loan obligations. CIFC has committed US$75 million. CMOA II is expected to support about US$7.5 billion of the firm’s incremental new issuance over the next several years. Toronto-based HOOPP oversees more than $70 billion in assets.
(Correction: It was previously reported that HOOPP committed US$75 million to CMOA II. The commitment was actually undisclosed.)
CIFC Partners with Healthcare of Ontario Pension Plan to Form New Risk Retention Vehicle
Healthcare of Ontario Pension Plan Commits to CIFC CLO Strategic Partners II
September 14, 2017
NEW YORK–(BUSINESS WIRE)–CIFC LLC (“CIFC” or the “Firm”), a U.S. private debt investment manager specializing in U.S. corporate and structured credit strategies, today announced that it has entered into a strategic partnership with the Healthcare of Ontario Pension Plan (“HOOPP”) to form CIFC CLO Strategic Partners II, a new capitalized manager-owned affiliate of CIFC (“CMOA II”). CMOA II intends to purchase the majority equity positions of CIFC’s future, new issue Collateralized Loan Obligations (CLOs) to comply with U.S. and E.U. risk retention rules.
Under the terms of the partnership, HOOPP has made a substantial, single external investor commitment to CMOA II, with CIFC committing up to $75 million. CIFC has issued a total of $2.9 billion in new CLOs, making the Firm the largest issuer by assets this year. CMOA II is expected to support approximately $7.5 billion of CIFC’s incremental new issuance over the next several years.
Oliver Wriedt, Co-CEO of CIFC, said, “We are thrilled to partner with HOOPP, a well-recognized thought leader within the Canadian pension fund community and a long-standing, active participant in the CLO market. We are pleased that HOOPP has chosen CIFC to help it gain access to the new issue CLO opportunities that lie ahead and look forward to a mutually beneficial strategic relationship for years to come.”
David Long, Senior Vice President and CIO of HOOPP, added, “CIFC has a strong and consistent track record, making the Firm our choice with whom to partner to access new issue CLO opportunities. As we embark on this partnership, we look forward to leveraging CIFC’s deep expertise as one of the top CLO managers in the world.”
Founded in 2005, CIFC is a private debt manager specializing in U.S. corporate and structured credit strategies. Headquartered in New York and serving institutional investors globally, CIFC is an SEC registered investment manager and one of the largest managers of senior secured corporate credit in the United States. As of August 31, 2017, CIFC has $15.7 billion in assets under management. For more information, please visit CIFC’s website at www.cifc.com.
With more than $70 billion in assets, HOOPP is one of the largest DB pension plans in Ontario, and in Canada. Our proven strategy and track record of investment returns drive our plan performance, making HOOPP a leader among its global peers. HOOPP is fully funded which means it has more than enough assets to pay pension benefits owed to members today, and in the future. HOOPP is a defined benefit pension plan that is dedicated to providing a secure retirement income to more than 321,000 workers in Ontario’s healthcare sector. More than 500 employers across the province offer HOOPP to their employees. For more information, please visit HOOPP’s website at www.hoopp.com.
Gasthalter & Co.
Jonathan Gasthalter/Amanda Klein, 212-257-4170
Photo courtesy of Reuters/Dado Ruvic