Investors in three CLO private funds totaling $1.5 billion selected ING Alternative Asset Management as collateral manager.
ING replaced Avenue Capital Management, confirmed Dan Norman, senior vice president and co-head of ING's Senior Loan Group. Mr. Norman declined to identify the institutional investors in the three funds, citing confidentiality agreements.
ING assumed responsibility for the three collateralized loan obligation funds after the May 2009 departure of Richard D'Addario, portfolio manager-Avenue CLO strategy, triggered the funds' “key-man” provisions, said Todd Fogarty, an Avenue Capital spokesman. Mr. Fogarty declined to comment further on Mr. D'Addario's departure.
Mr. D'Addario could not be reached for comment.
Sriram Balakrishnan replaced Mr. D'Addario as portfolio manager of the CLO strategy, Mr. Fogarty confirmed. According to the firm's website, Avenue Capital co-founders Marc Lasry and Sonia E. Gardner also are on the CLO investment team, which manages $2.5 billion.
ING assumed collateral management of the Avenue CLO V Ltd. fund ($622 million) and Avenue CLO VI Ltd. fund ($472 million) on Jan. 29, and for Avenue CLO IV Ltd. fund ($378 million) on Feb. 9, according to an ING news release.
