THL Credit Advisors will acquire Kramer Van Kirk Credit Strategies in a deal expected to close this summer.
Terms of the deal are not being disclosed, said Douglas Allen, a spokesman for THL.
The deal will add $3.4 billion managed in seven collateralized loan obligation vehicles by KVK to THL Credit's own family of 15 CLOs, which manage an aggregate $8.6 billion.
THL Credit now manages $12.1 billion, with the balance in direct lending and syndicated investments through public and private vehicles and separate and commingled funds, a joint news release from both companies said. After the acquisition, THL Credit's AUM will rise to $15.5 billion.
Mr. Allen declined to comment about the broad details of the acquisition, such as whether the employees of KVK will join THL Credit and continue to manage the CLOs, including KVK senior managing partners Thomas A. Kramer, CEO, and Timothy S. Van Kirk, chief risk officer.
Neither Mr. Kramer nor Jackie Rothchild, a KVK spokeswoman, returned calls seeking more information about the deal.
"We have known and respected Tom Kramer and Tim Van Kirk for a long time, both as professionals and as neighbors across the street from our Chicago office ... this is an opportunity to further scale our CLO asset base and broaden the THL Credit platform," said Brian Good, senior managing director and co-head of tradable credit at THL Credit, in a joint news release.
Mr. Kramer said in the release: "THL Credit's deep experience with CLOs and syndicated credit investments makes the firm a great fit for our business and our team. THL is well prepared to handle a larger portfolio of CLO investments."