Transactions


$520 million Deal Value

has acquired the CLO business of

has acquired the CLO business of

Financial advisor to Avoca Capital

Financial advisor to Avoca Capital

December 2009

Freeman & Co. Acted as Financial Advisor to Avoca Capital
Date
December 2009
Industry
Asset Management
Transaction
Buy-Side M&A
Deal Value
$520,000,000

Avoca takes over KBC CLO, grows management group

December 17, 2009 (Dublin, OH) - Avoca Capital Holdings is expanding its collateralized loan obligation management business, taking on the €350 million ($520 million) Lombard Street CLO I transaction as well as two professionals from the prior manager, London-based KBC Financial Products UK. Note holders officially approved the change of management on Monday after KBC resigned. A KBC spokeswoman did not return a phone call.

Alan Burke, chief executive at Avoca, said Avoca planned to actively seek out more mandates but declined to provide specifics on the strategy. The addition of the Lombard Street CLO brings Avoca’s assets under management to about €5.5 billion ($7.9 billion). The firm’s AUM grew this year by 30%, including the takeover of the €840 million ($1.2 billion) CLIO European CLO from Lehman Brothers International in July. Burke said he expected more consolidations in 2010 as new and existing CDO manager mandates moved to bigger players.

Avoca is also bringing over Niall Considine, portfolio manager, and Pierre van Niekerk, analyst, from KBC to facilitate the deal’s management change. The two started on Monday and report to Ali Allahbachani, managing director at Avoca.