First Eagle Investments signed a definitive agreement to acquire Napier Park Global Capital, an alternative credit manager with about $18.7 billion in assets under management as of Dec. 31.
The acquisition of Napier Park will "significantly" broaden First Eagle's capabilities in the "large and diverse alternative credit market, enabling it to offer clients exposure to opportunistic U.S. and European credit, U.S. mortgages and consumer debt, U.S. municipal debt and equipment leasing," First Eagle said in a news release Wednesday.
Financial terms were not disclosed, Ben Howard, a spokesman for Napier Park, said by email.
Upon completion of the transaction, Napier Park will become an autonomous, wholly owned unit of First Eagle.
Napier Park will be branded as "Napier Park, a First Eagle Investments Company," a spokesman for First Eagle said in an email.
An employee-owned partnership with offices in New York, London and Switzerland, Napier Park has 47 investment professionals, the release added.
Jim O'Brien and Jon Dorfman — who currently serve as Napier Park's chief executive officer and chief investment officer, respectively — will continue to run Napier Park as managing principals, reporting to Mehdi Mahmud, president and CEO of First Eagle Investments.
In addition, First Eagle indicated in the release, no changes will be made to Napier Park's "investment philosophy or processes as a result of the acquisition, nor are any personnel changes expected." Key Napier Park employees will sign long-term agreements and continue in their current roles.
The transaction will also have "no impact" on First Eagle Alternative Credit LLC, which will continue under its current leadership and operate independently from Napier Park.
First Eagle Alternative Credit is the Boston-based alternative credit platform at First Eagle Investments, with $20.7 billion in AUM.
The First Eagle spokesman added: "Operating autonomously in parallel under their own brands — with formal barriers in place to segregate the teams — Napier Park and First Eagle Alternative Credit will be free to manage assets according to their individual investment styles and proven processes," the First Eagle spokesman said. "Given their distinct approaches to the alternative credit market, each team is positioned to continue providing unique solutions for client portfolios."
"We believe Napier Park's capabilities are a strong complement to those of our existing global value, small cap and First Eagle Alternative Credit teams, and our clients will be better served by having access to all through a single platform," Mr. Mahmud said in the release.
Headquartered in New York, First Eagle had about $110.5 billion in assets under management as of Dec. 31.
The proposed transaction is expected to close in the coming months, subject to regulatory approvals and other customary closing conditions.
