* CVC Credit Partners will have $7.5 billion in assets
* Resource America will get 33 pct stake, receive $25 mln cash
* Private equity groups extending interest beyond buyouts
By Simon Meads
LONDON, Jan 4 (Reuters) - Private equity group CVC Capital Partners is expanding further into debt management in a deal with asset manager Resource America to create a new credit arm with assets of $7.5 billion.
CVC will combine its existing credit arm Cordatus Group with Resource America's Apidos Capital Management, the two parties said in a statement on Wednesday.
The new venture highlights how leading private equity groups are extending their activities beyond core buyouts as new deals become harder to find and competition more intense.
Rivals Blackstone and Carlyle have already built extensive credit arms to manage vehicles investing in corporate debt, such as leveraged loans and high-yield bonds.
And others have more recently entered the market, looking to bulk up with assets and find less volatile sources of fee income. Listed European private equity firm 3i Group bought the debt management business of Japanese bank Mizuho some 12 months ago.
"Both teams appreciate the significant benefits of being able to offer sponsors and companies access to a broader range of debt capital to support their businesses and initiatives," said Marc Boughton, managing partner of CVC Credit Partners.
Jonathan Cohen, CEO of Resource America, will be chairman of the new group.
Resource America will take a 33 percent interest in CVC Credit Partners and will receive $25 million in cash, under the terms of the deal.
The deal is expected to close before end-March, Resource America said.
Source: http://feeds.reuters.com/~r/reuters/mergersNews/~3/9KAKwtm8_m8/cvc-idUSL6E8C42QO20120104
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