October 13, 2016 | Crestline Investors Announces Closing of $361.0 Million CLO
Crestline Investors, Inc., a credit focused institutional alternative asset manager, today announced the closing of a $361.0 million collateralized loan obligation ("CLO"), known as Crestline Denali CLO XIV, Ltd., by its Crestline Denali Capital unit.
The CLO will be backed by a portfolio of primarily senior-secured leveraged loans and will have an approximately four and one-quarter year reinvestment period and a two-year non-call period. This is the second CLO to be sponsored by Crestline in 2016 following the $358.8 million Denali Capital CLO XII, Ltd., which closed March 31, 2016.
David Killion, Chief Executive Officer of Crestline Denali Capital, said: "We are pleased with the successful closing of CLO XIV, our second issuance this year. We have continued to grow our base of investors globally including attracting investors from the United States, Europe and Asia. The continued growth of our investor base and the ability to issue two CLOs this year affirms the benefits of the Crestline Investors platform and our ability to structure transactions to meet the ongoing changes to the regulatory framework of our industry."
"The success of this transaction affirms Crestline's strategy of structuring CLOs intended to meet risk retention standards in the United States or Europe," said Douglas Bratton, Managing Partner & CIO of Crestline. "After the U.S. regulations take full effect at the end of this year, organizations such as Crestline that have prepared for the new regulatory requirements will be in a strong position to continue to pursue new issuance."
BNP Paribas acted as the arranger for the CLO.
October 12, 2016 | Crestline Investors Creates Private Equity Credit and Fund Restructuring Team - Amit Mahajan Hired To Co-Lead Team With David Philipp
Crestline Investors, Inc. ("Crestline"), a credit-focused institutional alternative asset manager, today announced the creation of a Private Equity Credit and Fund Restructuring team to actively pursue niche financing opportunities in the private equity markets. This dedicated group will focus on providing bespoke capital solutions, including preferred equity and flexible debt structures, to mature private equity funds approaching the end of their structural lives.
Amit Mahajan, formerly a Managing Director at Macquarie Asset Management, will co-lead the team along with David Philipp, who joined Crestline in 2013. The new division is an expansion of the firm's Crestline-Kirchner initiative, which was formed in 2013 to acquire, manage and invest in underperforming private equity assets, portfolios and funds. Both Mahajan and Philipp will report to Douglas Bratton, Managing Partner & CIO of Crestline.
"We see an unmet need in the market for a team that can work with GPs to help them maximize the value of their assets," said Bratton. "From 2008-2012, Crestline launched dedicated funds seeking to capitalize on the secondary hedge fund market created by the 2008 financial crisis. After successfully deploying more than $1 billion across three funds, we are refocusing our efforts on what we feel is the next cyclical opportunity set."
"This is a natural evolution of our business and how we approach niche opportunities in the private equity markets," said Philipp, a Managing Director at Crestline. "We are witnessing rapid growth in several areas adjacent to the traditional secondary markets. With Amit onboard, we can deliver the full set of resources, expertise, and capital to complete both LP-led and GP-led transactions."
The PE Credit and Fund Restructuring team also includes three specialist portfolio managers and a senior associate, with a combined 58 years of experience across principal investing, private equity fund management, workouts and restructurings.
"We estimate there are $300-400 billion in private equity assets currently tied up in funds that have reached or are near their maturity dates," said Mahajan. "GPs and LPs are looking for alternative financing and liquidity solutions not met by traditional secondary markets. We want to help fill the current gap in the market by working directly with GPs and LPs to identify an exit strategy that fulfills the needs of all parties."
Mahajan has more than 16 years of experience in private equity portfolio financings, direct secondaries and general partner restructurings. While at Macquarie he was responsible for sourcing and executing private debt transactions ranging in size from $15-250 million, with a focus on secondary private equity deals and portfolio financing for private equity funds.
Before that he was a Director in the Global Private Funds Group at PineBridge Investments, where he was instrumental in building PineBridge's global secondary private equity platform, which totaled more than $1.7 billion across three dedicated funds. While at PineBridge he sourced secondary deals and executed more than $2 billion of transactions across fund and direct investments. Mahajan received his MBA from Columbia Business School, and a Bachelor of Technology from the Indian Institute of Technology.
May 31, 2016 | Crestline Investors Names Keith Williams a Partner
Crestline Investors, Inc., a credit focused institutional alternative asset manager, has named Keith Williams a Partner of the firm. Williams, who joined Crestline in 2012 as Managing Director and Senior Portfolio Manager, is responsible for Crestline’s Opportunistic and Private Credit Strategies.
“Keith has been a driving force in expanding these strategies, which have grown dramatically and now employ 16 people in the US and five in Europe. We are delighted to have Keith as a member of the Partnership,” said Douglas Bratton, Managing Partner & CIO of Crestline.
Crestline's Opportunistic and Credit Strategies group focuses on providing capital solutions to lower middle market and middle market companies, ranging from senior secured loans to junior capital in performing and distressed situations.
In total, Crestline manages $4.4 billion in credit and opportunistic strategies.
“I am honored to have been named a partner of the firm,” said Williams. “Crestline has had a long-standing commitment to credit strategies and I’m excited to continue working to build our business and identify attractive investment opportunities on behalf of our clients.”
Williams joined Crestline from McKinsey & Co., where he was a senior member of McKinsey’s Recovery & Transformation Practice. Before that, he was a senior member of the Special Situations Group at Goldman Sachs, where he developed and implemented liquid and illiquid distressed investing strategies and was responsible for deal sourcing and execution for private debt strategies. Williams has a BBA in Finance from Southern Methodist University and a MBA from Rice University.
March 31, 2016 | Crestline Investors Announces Closing of $358.8 Million CLO
Crestline Investors, Inc., a credit focused institutional alternative asset manager, today announced the closing of a $358.8 million collateralized loan obligation (“CLO”), known as Denali Capital CLO XII, Ltd., by its Crestline Denali Capital unit.
The CLO will be backed by a portfolio of primarily senior-secured leveraged loans and will have an approximately four-year reinvestment period and two-year non-call period. This follows a $413.7 million CLO, Denali Capital CLO XI, Ltd., which was issued in 2015.
David Killion, Chief Executive Officer of Crestline Denali Capital, said: “We are pleased with the successful issuance of CLO XII in the midst of challenging debt capital markets conditions and an evolving regulatory framework. It affirms the benefits of the Crestline Investors platform and our ability to engage with a global base of investors.
The success of this transaction affirms Crestline’s strategy of executing a fully risk retention compliant CLO under either U.S. or European regulations, or both,” said Douglas Bratton, Chief Executive Officer of Crestline. “We believe the market will continue to differentiate between managers that have prepared for the new regulatory regimes, and those that have not.” BNP Paribas acted as the arranger for the CLO.
March 7, 2016 | Crestline Investors Expands Opportunistic Credit Platform, Adds Experienced European Team
Crestline Investors, Inc. today announced the hiring of an experienced European Opportunistic Credit team and the opening of its first European office in London. This move represents an expansion of the firm’s well-established U.S. Opportunistic Credit Platform. Michael Guy, Crestline’s Chief Investment Officer of Europe, will lead the London office.
“The opening of our London office extends our geographic capabilities and complements our U.S. Opportunistic and Credit efforts,” said Douglas Bratton, Chief Executive Officer of Crestline. “Crestline is committed to growing its Opportunistic Credit platform and establishing on-the-ground resources in locations that support our investor base and where we see attractive investment opportunities.”