In partnership with Jefferies Group and structured credit firm Hildene Capital Management, the $13 billion Dallas-based firm Carlson Capital will be issuing new CLOs on its Cathedral Lake platform.
Four new Carlson CLOs will be offered within the next three years and in addition Jefferies and Hildene will share in the growth of the Carlson platform, which since 2013 has issued five CLOs, according to SEC documents.
“We have always valued our relationship with Jefferies and Hildene, and we are excited to collaborate with them more closely to further expand Carlson’s CLO platform,” said Stanton Ray, a Partner and head of corporate credit for Carlson. “We believe that this strategic investment will act as a growth accelerant, providing certainty of execution and enabling us to continue to scale our CLO issuance to meet the needs of a broader base of investors.”
Global Head of CLO Origination at Jefferies Jason Schechter said that Stanton and his team are one of the best credit teams in the market.
The deal for Hildene is significant as well as the firm manages over $12.5 billion in hedge fund, separate account and CDO assets within its distressed and event-driven credit opportunities focused strategy.
“Given our deep expertise transacting in the CLO space, we recognize that while alternative income platforms are in high demand, skilled managers can be scarce,” said Dushyant Mehra, co-chief investment officer at Hildene, in a statement. Mehra added that Hildene is offering investors unique high-quality investment risk with attractive upside via the platform.