ING Wholesale Americas agreed to sell ING Capital Advisors, a unit managing bank loans and collateralized loan obligations, to West Gate Advisors, a unit of Metropolitan West Asset Management, according to Elaine Clark, an ING spokeswoman. Terms were not disclosed.
ING Capital has 23 employees and managed about $3 billion as of Jan. 1. David Hudson, president and CEO of ING Wholesale Americas, said in the release that ING Capital will be renamed West Gate Horizons, and will operate as a separate unit. He added its management team will receive partial ownership of the new entity. WGH will specialize in nontraditional credit based strategies. These will include: leveraged loans on behalf of institutional investors in separate accounts, a leveraged loan commingled fund, and the existing CLO business. Mike Hatley, Mike Campbell and Graydon Wilcox will run West Gate Horizons as principals. Messrs. Hatley, Campbell and Wilcox formerly oversaw the collateral advisory and management services business at ICA and each brings more than 20 years of experience in corporate credit and financial analysis.
Ms. Clark said the sale will not have a significant effect on the firm's bottom line and that ING already manages about $5 billion in loan products. She added that ING is planning to launch a collateralized loan obligation unit later this year, but she declined to give details.
Scott Dubchansky, CEO of MWAM, said: "Historically, leveraged loans have provided investors with high income and price stability throughout a variety of market environments. This is evident in the return pattern produced by the asset class. This team further deepens MWAM's capabilities and commitment to the needs of the fixed-income investor."