UK/US - The Bank of New York is to acquire 80% of CDO manager, Alcentra, for an undisclosed sum.
The addition of Alcentra will boost BONY’s alternatives line up which also includes the Ivy Asset Management with $15bn under management.
“ Through Alcentra, we gain access to sophisticated, structured credit products for our institutional and high net worth clients while increasing the global distribution opportunities for Alcentra,” said Steven Pisarkiewicz, head of BNY Asset Management.
The decision on the part of management and Alcentra’s main shareholder, Alchemy, to sell rather than float indicates BONY is willing to pay a firm price. Management maintains a 20% stake in the firm.
“I’m quite surprised that Alcentra are going off to BONY,” commented one investment banker. “I assumed they would IPO because there is a fair amount of demand in the US market for CDO and CLO managers to IPO, but BONY was clearly willing to trump the IPO pricing.”
Alcentra, which focuses on sub-investment grade debt, has $6.2bn under management and was formed in March 2002 through the acquisition of Imperial Credit Asset Management from Imperial Credit Industries in the US and in March 2003, through the acquisition of Barclays Capital Asset Management from Barclays Bank in Europe.
Alcentra has operations in London and Los Angeles and currently manages 15 different investment funds with over $6.2bn under management.
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