Sankaty Advisors to Acquire Regiment CLO Assets Totaling $1.6 Billion

Ropes & Gray represented Sankaty Advisors, the global credit affiliate of Bain Capital, in a definitive agreement with Regiment Capital Advisors for Sankaty to acquire the management contracts for four portfolios of collateralized loan obligations (CLOs) totaling $1.6 billion of assets from Regiment. The management contracts to be transferred are for Cavalry CLO II, Ltd., Cavalry CLO III, Ltd., Cavalry CLO IV, Ltd., and Cavalry CLO V, Ltd., all of which contain underlying assets across a diverse array of industries.

Sankaty is a seasoned CLO manager with a strong credit investment track record over 16 years. The firm has managed 27 CLOs since inception. It currently has 12 CLOs in the United States and Europe under management. The acquisition of these contracts will bring Sankaty’s CLO assets under management to $7.8 billion, and the firm’s total AUM to $28.7 billion.

The acquisition, announced Nov. 16, is expected to be completed by the end of 2015 upon receipt of certain necessary consents. Financial terms were not disclosed.

The Ropes & Gray team was led by private equity partner Alfred Rose and finance counsel Patricia Lynch, and included business & securities litigation partner Peter Welsh.