THL Credit Advisors announced that it has expanded its Direct Lending team with the promotion of Eric Lee to Managing Director and the hiring of Fawwaz Ahmed and Troy Hebert, each as a Vice President. THL Credit has hired seven new Direct Lending investment professionals this year. Mr. Lee was previously a Director for THL Credit's Direct Lending platform in the Company's New York office, where he was responsible for originating, evaluating, and executing new investment opportunities and for managing portfolio investments. Mr. Lee first came to THL Credit's Direct Lending team in early 2017, and is currently based in the Los Angeles office, where he is responsible for the origination and structuring of investment opportunities with financial sponsors across the Western United States. Previously, he was a Director at Credit Suisse Asset Management's Corporate Credit Solutions Group, where he was responsible for originating, structuring, and monitoring investments for Credit Suisse Park View BDC. Mr. Lee earned his M.B.A. with Honors from The University of Chicago Booth School of Business and his B.A. in Economics from Columbia University. "Eric has earned a well-deserved promotion to Managing Director," said Chris Flynn, CEO of THL Credit. "His larger role within our firm will facilitate the growth of our portfolio and help us continue to deliver strong risk-adjusted returns to our investors."
THL Credit Advisors announced the signing of a definitive agreement to acquire the collateral management business of Kramer Van Kirk Credit Strategies. Founded in 2012 and based in Chicago, KVK currently manages seven collateralized loan obligations totaling approximately $3.4B of assets. THL Credit manages both direct lending and broadly syndicated investments through public and private vehicles, collateralized loan obligations, separately managed accounts and co-mingled funds. THL Credit currently manages 15 CLOs, including the recently priced THL Credit Wind River 2018-1. Based on current AUM, the acquisition would bring THL Credit's CLO assets under management to approximately $12B and the firm's total AUM to over $15.5B. The closing of the transaction is expected during the summer of 2018, upon receipt of certain required consents.
THL Credit downgraded to Hold at Maxim on unexpected NAV loss. As reported earlier, Maxim analyst Michael Diana downgraded THL Credit to Hold from Buy citing the unexpected Q4 losses as seen in the 7.3% decline in the company's net asset value. Diana attributes the losses to the company's "transition toward first-lien senior secured loans to PE-sponsored companies from more junior positions in unsponsored companies", adding that he "would not be surprised by further losses".