LibreMax Capital and TowerBrook Capital Partners have formed CAVU Investment Partners. The new company will invest in the equity tranches of new CLOs managed by Trimaran Advisors LLC, LibreMax’s CLO management platform.
NEW YORK–(BUSINESS WIRE)–LibreMax Capital, LLC (“LibreMax”), an asset management firm specializing in structured products and corporate credit, today announced the establishment of CAVU Investment Partners, LLC (“CAVU”). This new entity, formed in partnership with international investment management firm TowerBrook Capital Partners L.P. (“TowerBrook”), will invest in the equity tranches of new issue collateralized loan obligations (“CLOs”) managed by Trimaran Advisors, LLC (“Trimaran”), the CLO management platform of LibreMax. David Moffitt, Head of Tactical Opportunity Investing and CLO Management at LibreMax and President of Trimaran will serve as President of CAVU.
Under the terms of the partnership, TowerBrook has made a substantial commitment to CAVU to support multiple Trimaran CLOs. CAVU is expected to begin investing in the second quarter of 2019 and can continue making investments for five to seven years.
Mr. Moffitt said, “We are pleased to partner with TowerBrook to form CAVU, which we believe will allow us to better access the capital markets and scale the Trimaran platform, while generating attractive returns for our investors. Our ability to come to market with dedicated equity will provide our debt investors increased flexibility and greater certainty of execution.”
“We have a longstanding relationship with LibreMax and we are delighted to form this strategic partnership to help scale the Trimaran platform over the long-term,” said Jonathan Bilzin, Managing Director of TowerBrook.
The investment was made through the TowerBrook Structured Opportunities Fund (TSO), which was established in 2015 to back great management teams and businesses at the inflection point of growth and change where traditional control-oriented attributes may not apply.
LibreMax acquired Trimaran in December 2018. Trimaran currently manages six CLOs with approximately $3 billion of assets under management.
About LibreMax Capital
Founded in 2010, LibreMax Capital, LLC is a New York-based asset management firm specializing in structured products and corporate credit with $6.3 billion of assets under management.
TowerBrook Capital Partners L.P. is an investment management firm with in excess of $12.4 billion under management and a history of creating value for investors. The firm is co-headquartered in New York and London and focuses on making investments in companies headquartered in North America and Europe. TowerBrook’s private equity strategy primarily pursues control-oriented investments in large and mid-market companies, principally on a proprietary basis and often in situations characterised by complexity. TowerBrook’s structured opportunities strategy invests in transactions incorporating contractual downside protection or where traditional control-oriented attributes may not apply. TowerBrook is a certified B Corporation. B Corporation certification is administered by the non-profit B Lab organisation and is awarded to companies that demonstrate leadership in their commitment to environmental, social and governance (ESG) standards and responsible business practices.