July 21 (Reuters) - Investment firm Pretium Partners has agreed to acquire credit manager Valcour Capital Management, which has about US$1bn in assets, according to an investor letter.
Pretium, led by former Goldman Sachs executive Don Mullen, will buy 100% of the shares of Valcour, which will continue to operate as an independent manager following the sale, according to the letter.
Valcour currently oversees three Collateralized Loan Obligations (CLOs) and the Valcour Opportunity Fund, a hedge fund focused on credit and structured products, according to its website. It is also a sub-advisor to the Ziegler Floating Rate Fund.
CLO managers have been seeking partners since Dodd-Frank risk-retention rules were finalized in 2014, requiring firms to hold 5% of their funds. Additional outside capital can help managers more easily issue new funds and more easily navigate the capital markets. Credit manager CIFC announced last year it would be acquired by F.A.B. Partners and in 2015, insurance asset manager Conning announced it would purchase Octagon Credit Investors.
“Pretium offers the prospect of long-term financial stability, access to a wide range of institutional investors, a better growth trajectory for assets under management and resources to assist in developing the firm’s investment management infrastructure and personnel,” George Marshman, managing partner at Valcour, wrote to the firm’s CLO noteholders.
Valores Capital Partners served as exclusive financial advisor to Valcour, according to sources.
Marshman declined to comment.
“Pretium continues to evaluate opportunities for our investors that are presented either through market structure shifts or disruptions arising within the housing, mortgage finance and credit markets,” according to a statement from a Pretium spokesperson. “Pretium’s growth into the CLO market is the next step in the firm’s strategy to meet the needs of our investors.”
Valcour was founded in 2009 by Marshman and Joseph Schlim, former officials at Aladdin Capital Holdings.
Pretium was founded in 2012 and is led by Mullen, a former head of Goldman’s global credit and mortgage businesses. (Reporting by Kristen Haunss; Editing by Michelle Sierra)