Carlson Capital, L.P. (“Carlson”), an alternative asset management firm, today announced that it reached a strategic agreement with Jefferies Group LLC (“Jefferies”) and structured credit investor Hildene Capital Management, LLC (“Hildene”) to support the new issuance of CLOs on Carlson’s Cathedral Lake platform.
Under the terms of the agreement, Jefferies and Hildene will provide CLO equity capital to support the new issuance of four Carlson CLOs within the next three years. As strategic investors, Jefferies and Hildene will share in the growth of the Cathedral Lake CLO platform.
Stanton Ray, a Partner and Head of Corporate Credit for Carlson, said, “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. 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.”
Jason Schechter, Global Head of CLO Origination at Jefferies, said, “When making equity investments in CLOs we always look for very strong credit managers. Stanton and his team are one of the best credit teams in the market and we believe this investment, alongside Hildene, will support the ongoing growth of Carlson’s CLO business in the coming years.”
Dushyant Mehra, Co-Chief Investment Officer at Hildene, added, “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. We are pleased to be working with Carlson’s best-in-class credit team to help scale their CLO business, while offering our investors access to unique, high-quality investment risk with attractive upside.”
About Carlson Capital, L.P.
Carlson Capital, L.P. is an alternative asset management firm founded in 1993 by Clint Carlson. The firm currently manages multi- and single-strategy hedge funds and CLOs. Carlson Capital seeks to deploy capital in attractive, risk-adjusted opportunities and construct diversified portfolios using an overall investment strategy centered around active, fundamental investing.
About Hildene Capital Management, LLC
Founded in 2008, Hildene Capital Management, LLC is a structured credit asset manager focused on distressed and event-driven credit opportunities which has together with its affiliates over $12.5 billion in hedge fund, separate account and CDO assets under management. The firm seeks to generate attractive risk-adjusted returns for its institutional clientele by implementing a disciplined, systematic investment approach.
About Jefferies Group LLC
Jefferies Group LLC is the largest independent, global, full-service investment banking firm headquartered in the U.S. Focused on serving clients for nearly 60 years, Jefferies is a leader in providing insight, expertise and execution to investors, companies and governments. Our firm provides a full range of investment banking, advisory, sales and trading, research and wealth management services across all products in the Americas, Europe and Asia. Jefferies’ Leucadia Asset Management division is a growing alternative asset management platform. Jefferies Group LLC is a wholly owned subsidiary of Jefferies Financial Group Inc. (NYSE: JEF), a diversified financial services company.
This press release may contain forward-looking statements. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Carlson Capital and are subject to significant risks and uncertainty. Readers are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Carlson Capital undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Carlson Capital believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve a variety of risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements.
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