Orix Corporation USA has agreed to sell Mariner, an investment advisor. The buyers are Mariner Chairman and CEO Curtis Arledge, William Michaelcheck, Mariner founder, partner and co-chief investment officer and other senior members of the firm.
NEW YORK & DALLAS–(BUSINESS WIRE)–ORIX Corporation USA (“ORIX USA”) and Mariner Investment Group (“Mariner”) today announced they have reached an agreement to sell Mariner to Curtis Arledge, Mariner Chairman and CEO, William Michaelcheck, Mariner Founder, Partner and Co-Chief Investment Officer and other senior members of the firm. The transaction aligns with ORIX USA’s objective to consolidate the company’s investment capital and asset management strategy in the U.S., with a focus on alternative assets, including private credit, real estate and private equity. As an independent company, Mariner will continue to provide its investors with fixed income relative value and credit strategies in the public and private markets.
As part of the transaction, ORIX USA will retain Mariner’s leveraged credit business, originally launched at ORIX USA and co-led by David Martin and Erik Gunnerson. As of March 31, 2020, the team has approximately $4.6 billion of assets under management primarily in broadly syndicated loans and structured credit investments across eight collateralized loan obligations (CLOs) and multiple separately managed accounts. ORIX USA has made significant investments in the leveraged credit business, and this transaction will enable the company to continue taking advantage of opportunities in broadly syndicated loans and CLOs.
Mariner will continue to manage all of its other investment strategies. After closing, the Mariner business will be 100 percent employee-owned and continue to operate under the Mariner name.
“This transaction will allow us to further hone the asset management solutions we provide our clients,” said Terry Suzuki, CEO and President of ORIX USA. “We appreciate everything that Curtis, Bill and the entire Mariner team have done over the past decade in their partnership with ORIX USA, and we wish them well in their future endeavors. We are also pleased to have Mariner’s leveraged credit business at ORIX USA, where we know it will build on its years of success in the CLO market.”
“We are excited to begin our journey as an independent company and to build on the continued success of our investment strategies,” said Arledge. “This opportunity positions us well to capitalize on the evolving investment landscape for our clients. We have enjoyed being part of the ORIX USA family and are confident they will continue to thrive.”
ORIX USA will use an existing affiliated registered investment adviser to house the Leveraged Credit business, as well as other potential asset management strategies in the future.
In addition, Arledge has stepped down from his role as the head of ORIX USA’s asset management business. Art Mbanefo, Senior Managing Director, Chief Investment Officer and Head of Principal Business of ORIX USA, has assumed that role and is responsible for leading the investment and asset allocation strategy across the company’s finance, merchant banking and asset management activities.
About ORIX Corporation USA
Since 1981, ORIX USA has provided innovative capital solutions that clients need to propel their business to the next level. ORIX USA and its subsidiaries — Boston Financial Investment Management, Hunt Real Estate Capital, ORIX Real Estate Capital (the combined company of RED Capital Group and Lancaster Pollard), NXT Capital, RB Capital and ORIX Capital Partners—include a team of approximately 1,200 employees spanning more than 35 offices across the U.S. and Brazil. ORIX USA and its family of companies have approximately $70 billion of assets under management, administration and servicing (including $10 billion held by the Company and its subsidiaries), as of December 31, 2019. Its parent company, ORIX Corporation, is a publicly owned international financial services company with operations in 37 countries and regions worldwide. ORIX Corporation is listed on the Tokyo Stock Exchange (8591) and New York Stock Exchange (IX). For more information, visit orix.com.
About Mariner Investment Group, LLC
Mariner Investment Group, LLC is a longstanding investment adviser with significant experience in providing clients with a broad array of unique trading and investment strategies with a particular focus on fixed income relative value offerings. Founded in 1992, Mariner and its associated advisers have offices located in New York, London, Tokyo, Philadelphia, Harrison (NY), Rowayton (CT) and Summit (NJ). For more information, visit www.marinerinvestment.com.