Ramirez Asset Management has acquired a private credit team and its assets from hedge fund manager Avenue Capital Group.
RAM, a $12 billion fixed-income and equity manager, did not have private credit capability prior to the acquisition, a spokesperson confirmed to Pensions & Investments.
The acquisition includes five existing investments funds with about $500 million in capital commitments. Current commitments, without leverage, are about $300 million, the spokesperson confirmed to P&I.
The funds will continue to be led by William Maier, Patric Lager and Frank Madden who all joined RAM. Maier, senior portfolio manager and managing director, will lead the new credit opportunities group at RAM, according to a Jan. 13 news release.
“As a credit-focused fixed-income manager for some of the largest institutional investors in the U.S., we are thrilled to expand our investment offerings and expertise with our new private credit opportunities team,” said Samuel A. Ramirez Jr., president and CEO of RAM, in the news release. “The integration onto RAM’s platform has been seamless, and we look forward to launching a new fund in 2025.”
RAM aims to raise $300 million to $500 million in new assets and launch a new fund during the first quarter, the spokesperson confirmed. The fund will mainly invest in syndicated and midcap club-sponsored credits, according to the release.
The acquisition closed Oct. 1. The terms were not disclosed.
A spokesperson for Avenue Capital declined to comment.
Avenue has about $12.1 billion in assets under management. The firm continues credit investing as part of its U.S. strategy focusing on “specialty lending, dislocated liquid credit, stressed/distressed debt and undervalued equity of U.S. assets and companies,” according to its website.
The growth in private credit in recent years has seen firms both build in-house capabilities or acquire teams or businesses. In one of 2024’s biggest moves, BlackRock acquired HPS Investment Partners.