THL Credit has agreed to acquire the collateral management business of Kramer Van Kirk Credit Strategies LP. No financial terms were disclosed. Based in Chicago, KVK manages seven collateralized loan obligations totalling about $3.4 billion. The deal is expected to close during the summer of 2018.
BOSTON – June 27, 2018 – THL Credit Advisors LLC (“THL Credit” or “the Company”), a leading alternative credit investment advisor, today announced the signing of a definitive agreement to acquire the collateral management business of Kramer Van Kirk Credit Strategies LP (“KVK”). Founded in 2012 and based in Chicago, KVK currently manages seven collateralized loan obligations (CLOs) totaling approximately $3.4 billion of assets.
THL Credit manages both direct lending and broadly syndicated investments through public and private vehicles, collateralized loan obligations, separately managed accounts and co-mingled funds. THL Credit currently manages 15 CLOs, including the recently priced THL Credit Wind River 2018-1. Based on current AUM, the acquisition would bring THL Credit’s CLO assets under management to approximately $12.0 billion and the firm’s total AUM to over $15.5 billion.
“We have known and respected Tom Kramer and Tim Van Kirk for a long time, both as professionals and as neighbors across the street from our Chicago office. We believe KVK’s CLOs will complement our existing strategy,” said Brian Good, Senior Managing Director and Co-Head of Tradable Credit for THL Credit. “This is an opportunity to further scale our CLO asset base and broaden the THL Credit platform from which to generate risk adjusted returns for our investors.”
“THL Credit’s deep experience with CLOs and syndicated credit investments makes the firm a great fit for our business and our team,” said Kramer, Principal at KVK. “THL Credit is well prepared to handle a larger portfolio of CLO investments, and we’re looking forward to working together through this integration.”
The closing of the transaction is expected during the summer of 2018, upon receipt of certain required consents.
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About THL Credit
THL Credit is an alternative credit investment manager for both direct lending and broadly syndicated investments through public and private vehicles, collateralized loan obligations, separately managed accounts and co-mingled funds. THL Credit maintains a variety of advisory and sub-advisory relationships across its investment platforms, including THL Credit, Inc. (Nasdaq: TCRD), a publicly traded business development company, and THL Credit Senior Loan Fund (NYSE: TSLF), a non-diversified, closed-end management investment company.
About Kramer Van Kirk Credit Strategies LP
KVK is a Chicago based senior secured loan manager founded by principals Tom Kramer and Tim Van Kirk in late 2011. KVK has raised nine CLOs since it priced its inaugural 2.0 deal, in May of 2012. The Principals of KVK were the founding partners of LightPoint Capital Management, a senior secured loan management firm sold to Lehman Brothers in 2007. For additional information on Kramer Van Kirk Credit Strategies LP, please visit KVK’s website at www.kvkcs.com.