NEW YORK, Oct. 03, 2023 (GLOBE NEWSWIRE) — Redding Ridge Asset Management (“Redding Ridge”) today announced that it has acquired CLO management contracts totalling $2.8 billion in assets under management (“AUM”) from Gulf Stream Asset Management (“Gulf Stream”). With the close of the transaction, Redding Ridge will have more than $26 billion of AUM and expects a seamless integration of the contracts and to actively manage the new portfolios consistent with its disciplined CLO strategy.
Bret Leas, Redding Ridge Managing Director, said, “This transaction further solidifies the scale of Redding Ridge’s CLO management platform, and in credits that are well covered by our analysts. We believe Redding is positioned for continued growth and success, particularly in an environment that benefits those managers with patient, long-term capital.”
Redding Ridge is an independently managed affiliate of Apollo (NYSE: APO), specializing in CLO management and structured credit partnership investments. Since its establishment in 2016, Redding Ridge has managed five of the top 10 highest-performing US CLOs of all time1. The firm employs a disciplined, credit-first investment philosophy and is focused on consistent portfolio management, structuring and strategic execution.
This is the second portfolio acquisition of CLO management contracts by affiliates of Apollo from Gulf Stream, stemming from a long-standing relationship and aligned investment philosophy. In March of 2019, Apollo and Redding Ridge entered into a strategic partnership with Gulf Stream to relaunch its CLO business and, under the leadership of President and CIO, Mark Mahoney, Gulf Stream grew to $2.8 billion of CLO AUM.
Mark Mahoney, said, “Gulf Stream 2.0 was an outgrowth of our long-standing relationship with Apollo and this transaction with Redding Ridge marks another successful cycle of our partnership.”
Financial terms were not disclosed. Dechert LLP served as legal counsel and Berkshire Global Advisors served as financial advisor to Gulf Stream in the transaction. Milbank LLP and Fried, Frank, Harris, Shriver & Jacobson LLP served as legal counsel to Redding Ridge and Apollo.
About Redding Ridge Asset Management
Redding Ridge Asset Management is an independently managed affiliate of Apollo specializing in structured credit, with over $23 billion in AUM and two principal businesses: CLO Management and Partnership Investments. Our credit-first philosophy, disciplined investment strategy and strategic relationships help to set us apart in the industry. For more information about Redding Ridge, please visit www.rram.com.
About Gulf Stream Asset Management
First established in 2002, Gulf Stream Asset Management is an investment management firm and SEC-registered investment advisor. The firm invests primarily in US-based broadly syndicated leveraged loans and has a successful track record of managing 24 CLO vehicles, including SMAs, for the world’s leading institutional investors.
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1 Source: Creditflux: https://newsletter.creditflux.com/print-and-sprints-from-2022-generate-near-record-returns