US alternative platform to buy private debt manager

US listed private debt asset manager CIFC is to be acquired by alternative investment platform F.A.B. Partners, launched by former employees of Deutsche Bank and Goldman Sachs, for around $333m (€295m) in cash.

A merger agreement has been found between CIFC and a branch of F.A.B.

CIFC has been established in 2005 in New York and has $14bn (€12.4bn) of assets under management. It specialises in US corporate loan strategies.

Tallying over 75 employees, the company serves more than 200 institutional investors globally.

It is understood that CIFC shareholders will be entitled to receive $11.46 (€10.1) in cash per share as following : $11.36 per share as consideration in the merger in addition to a $0.10 per share cash distribution to be paid on 12 September 2016 to shareholders.

F.A.B. specified the capital backing for the purchase of CIFC has been secured from Supreme Universal Holdings Ltd, a company controlled by Qatar’s royal family.

The transaction has been approved by CIFC’s board of Directors and is subject to approval by CIFC’s shareholders and regulators.

Jeffrey Serota, chairman of CIFC’s Board, stated: “We are pleased to have reached this agreement with F.A.B., which follows a thorough review of strategic and financial alternatives that generated interest from over a dozen suitors. Our board concluded that this offer maximizes value for our shareholders and is in the best interests of our investors and clients.”

Michele Faissola, co-founding partner of F.A.B., said:  “CIFC is a leading private debt investment platform and one of the largest CLO managers in the industry and we are thrilled that this acquisition marks our first foray into the U.S. credit markets.”

He added: “CIFC’s highly experienced investment team, institutional infrastructure and blue-chip client base, make them an ideal partner for us as we look to access the US market for our clients. Our clients are committed to capitalizing on both current and future investment opportunities in the US and we view CIFC as our beachhead into these exciting opportunities.”

Adrien Paredes-Vanheule
Adrien Paredes-Vanheule is deputy editor and French-Speaking Europe Correspondent for InvestmentEurope, covering France, Belgium, Geneva and Monaco. Prior to joining InvestmentEurope, he spent almost five years writing for various publications in Monaco, primarily as a criminal and financial court reporter. Before that, he worked for newspapers and radio stations in France, in particular in Lyon.

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