BlueBay Asset Management will take on the U.S. collateralized loan obligation business of parent firm Royal Bank of Canada in a unit liftout.
The unit comprises four individuals and $500 million in assets under management, adding to BlueBay's 26-person leveraged finance team. That team manages more than $10 billion in assets. BlueBay's existing CLO business is minimal at the moment, but there are plans to increase assets under management in the "very near term with new vehicles," a spokesman said.
The team will be integrated into BlueBay's CLO management platform under the leadership of Sid Chhabra, head of structured credit and CLO management.
The addition of the team "provides an exciting opportunity for us to step up our CLO franchise with experienced individuals and has accelerated our plans to manage U.S.-focused CLOs," Mr. Chhabra said in a news release. "The new additions also support BlueBay's commitment to continuing to add new strategies and capabilities in liquid and illiquid fixed income."
BlueBay has a total $57 billion in assets under management.