Cairn Capital Group agreed to acquire specialist distressed credit manager Bybrook Capital.
London-based Bybrook will be merged with Cairn Capital, a credit management specialist.
Bybrook partners will become “meaningful minority shareholders” in the merged business, owning about 36%, alongside existing Cairn Capital minority shareholders. Cairn’s majority shareholder, Mediobanca, will hold a 64% stake in the combined business, a spokesman confirmed.
Bybrook was established in 2014 and manages about $2.5 billion on behalf of institutional investors. The merger brings Cairn’s assets under management to about $8 billion in public, private, performing and distressed investment opportunities.
Terms of the deal were not disclosed.
The transaction is expected to complete in the second quarter, subject to regulatory approval and other customary conditions.
“We are confident that the combined fundamental credit research capabilities and complementary skills will greatly enhance the investment process and our ability to consistently deliver exceptional returns throughout the cycle,” Nicholas Chalmers, Cairn Capital CEO, said in the release.
Robert Dafforn, CIO of Bybrook, said in the same release: “As one of Europe’s leading CLO franchises for many years, Cairn Capital provides Bybrook with even broader research coverage, which is sure to drive strong returns within stressed/distressed and special situations over the years to come. We are excited that we will be able to provide full credit markets solutions to clients via the enhanced and expanded platform.”
