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Global asset manager New York Life Investments has agreed to acquire a majority stake in boutique distressed and high-yield debt specialist Credit Value Partners as it expands its range of alternative investment solutions.
Terms of the acquisition, which is subject to customary closing conditions and is expected to close in the first quarter of 2017, were not disclosed.
Credit Value Partners manages more than $2 billion in co-mingled funds as well as separately managed accounts for public and private pension funds, insurance companies, family wealth offices and high net worth investors.
Berkshire Capital Securities LLC acted as exclusive financial advisor to Credit Value Partners, while Tannenbaum Helpern Syracuse & Hirschtritt LLP acted as its legal advisor, according to a statement.
New York Life Investments has been steadily building its stable of alternative investment solutions, now offering private equity, mezzanine, equity co-investing, middle market lending, real estate, hedged strategies, liquid alternatives and real assets. New York Life Investments and its various boutiques, including Candriam Investors Group, Cornerstone Capital, GoldPoint Partners, IndexIQ, MacKay Shields and Private Advisors, manage these strategies.
“CVP is a valuable opportunity to expand our alternatives offerings,” said Yie-Hsin Hung, CEO of New York Life Investment Management, in the statement. “The capabilities of CVP’s veteran team align with the income generation needs and total return profile of our investor base.”
“This partnership presents a tremendous opportunity for CVP to deepen and expand our credit investment platform and maintain our business culture,” said Donald Pollard, managing partner and portfolio manager at Credit Value Partners. “New York Life Investments is a highly regarded partner with significant resources that will enhance CVP’s access to capital and investment opportunities and enable our firm to realize its full potential.”
New York Life Investments is the global asset management unit of New York Life, the largest mutual life insurance company in the United States and one of the largest in the world. The division managed more than than $519 billion deployed across a broad array of traditional and alternative investment products as of November 30, 2016.