Apollo is providing seed capital to support Advent Capital Management’s launch of its new collateralized loan obligation platform. No financial terms were disclosed.
NEW YORK, May 9 – Advent Capital Management (“Advent”), a leading global credit manager with approximately $10 billion in assets under management, today announced a strategic capital partnership with Apollo (NYSE: APO), on behalf of its managed investment vehicles, to support the launch of Advent’s collateralized loan obligation (“CLO”) platform. Proceeds from Advent’s arrangement with Apollo are intended to provide a combination of seed equity and debt capital for a series of Advent-managed CLOs.
Advent’s debut CLO platform is a natural and synergistic extension of the firm’s credit underwriting, structuring and leveraged loan expertise and is designed to meet the evolving and dynamic demands of its clients and the market. With strategic support from Apollo, which shares a like-minded, credit-first philosophy, Advent will enhance its disciplined investment and portfolio management approach as it seeks to continue to offer investors attractive risk-adjusted returns through income and capital appreciation.
Commenting on the partnership, Tracy Maitland, President and Chief Investment Officer of Advent, said: “By enhancing Advent’s current platform and performance-based culture, we are demonstrating our continued commitment to meeting the changing needs of a competitive market. We are delighted and extremely enthusiastic to symbiotically partner with Apollo, a world-class global market leader, that shares our credit-first philosophy to build our CLO capabilities. Advent’s established expertise in analyzing corporate capital structures allows us to naturally extend our specialist platform with a complementary credit offering. This is an exciting time for Advent to enter a growing market that further expands upon our existing investment capabilities.”
Apollo Partner and Head of Structured Credit Bret Leas said: “Advent Capital Management has an excellent track record, shares a disciplined credit approach and is a natural CLO partner for Apollo. We are pleased to apply our capital and expertise to expand the opportunity for Advent to grow and diversify their business while generating attractive risk-adjusted return opportunities for our clients.”
About Advent Capital Management
Advent Capital Management, LLC (“Advent”) was founded in 1995 and actively manages approximately $10 billion across traditional, alternative and closed-end fund strategies. As a diverse firm, Advent prides itself on its commitment to a culture of equity and inclusion stemming from its diverse workforce of 57 individuals based in New York and London. The team includes 23 seasoned investment professionals focused on global opportunities in convertible securities, high yield bonds and leveraged loans. Its clients include some of the world’s largest financial institutions. Advent is a responsible investor and UN PRI signatory.