NEW YORK (Reuters) – Investment firm Carlyle Group on Thursday said it will acquire $5.1 billion of credit assets from Stanfield Capital Partners, a New York-based fixed income money manager, the first of many such deals in a consolidating corner of the market.
Carlyle, one of the world’s largest private equity investors, agreed to purchase management contracts on $4.2 billion in collateralized loan obligations, or CLOs, and $950 million in managed account assets.
The purchase will boost Carlyle’s assets under management to $18.1 billion and broaden the firm’s credit business.
Financial terms were not disclosed; the transaction is expected to close in the third quarter.
Mitch Petrick, Carlyle’s head of credit alternatives and a former top Morgan Stanley (MS.N) executive, in a statement said the deal will make Carlyle “the world’s largest structured credit managers and an industry consolidator.”
Petrick said Carlyle will seek to acquire more such credit assets.
(Reporting by Joseph A. Giannone; Editing by Phil Berlowitz)