Greywolf Capital Management LP, an established credit manager, today announced the formation of Greywolf Loan Management LP. GLM will sponsor and manage future Greywolf collateralized loan obligation transactions while acting as the risk retention investor for those transactions. Greywolf also announced that it has completed a first close of its second dedicated CLO equity fund with more than $100 million in longer-term capital commitments to support GLM's risk retention investments.
"We are pleased to complete this capital raise to enable GLM to sponsor and manage risk retention compliant CLO transactions, and we sincerely thank our investors for their support," said Joe Marconi, Partner and Portfolio Manager of the CLO Credit Strategy at Greywolf. "We believe the ability to source this dedicated capital significantly streamlines the CLO issuance process, ultimately enhancing returns for our investors."
Since 2007, Greywolf has successfully launched $2.7 billion in CLOs with $2.2 billion currently outstanding. Given this additional capital, Greywolf expects to increase its managed CLO platform by roughly $1 billion over the next 12 months. In addition to managing Greywolf CLO transactions, the Firm also manages a number of customized portfolios that invest in 3rd party CLO debt and/or equity.
"We have actively used CLOs to create customized investment solutions for our investors since 2006, launching our first CLO in 2007," said Jon Savitz, Managing Partner at Greywolf. "We believe the integration of the credit expertise of our fundamental investment team into the CLO investment process provides a meaningful competitive advantage and enables us to construct and manage CLO portfolios that perform well through various market environments and deliver superior risk-adjusted returns." The Greywolf investment team comprises 14 professionals with an average tenure at Greywolf of more than ten years.
The Firm also announced the refinancing of debt tranches previously issued by Greywolf CLO II, III and IV, CLO transactions launched in 2013 and 2014. Reducing the cost of financing associated with these CLOs (and, in the case of Greywolf CLO II, extending the CLO's maturity) should enhance the future returns for the equity investors in those CLOs. A portion of the equity in these CLOs is held by a dedicated CLO equity fund that Greywolf raised in 2013. That fund launched with more than $120 million in commitments and has invested in the equity of four outstanding Greywolf CLO transactions.
About Greywolf
Founded in 2003, Greywolf Capital Management LP ("Greywolf" or the "Firm") is a registered investment adviser with approximately $3.2 billion in assets under management allocated across our Event Driven and CLO Credit Strategies. Our accomplished and cohesive team of 30 includes 14 dedicated investment professionals. At Greywolf, we combine the expertise developed over our history with time-tested portfolio management skills to offer attractive, risk-adjusted returns over the long-term. The Firm has earned a reputation for its commitment to integrity, transparency and alignment as a true partner with our investors. For more information, visit www.greywolfcapital.com.
