First Eagle Investment Management will acquire alternative credit manager THL Credit Advisors from its private equity parent company, Thomas H. Lee Partners.
The deal is expected to close in first quarter 2020, the firms said Sunday in a joint news release.
Terms of the deal are not being disclosed because both firms are privately owned, said Brinton Williams, a First Eagle spokesman, in an interview.
The alternative credit platforms of each firm will be combined and manage a total of about $23 billion with $16.8 billion from THL Credit and $6 billion from First Eagle, which manages a total of $99 billion.
Christopher Flynn, currently THL Credit's CEO, will serve as president for the combined alternative credit platform and will report to Mehdi Mahmud, First Eagle's president and CEO. THL Credit's invests in tradable credit and direct lending to middle-market companies.
James Fellows, THL Credit's CIO and co-head of tradable credit, will be CIO of the combined investment platform.
Mr. Williams did not respond to a request for information about possible layoffs resulting from combining the First Eagle and THL Credit teams. Head counts for each credit team are 93 for THL Credit and 57 for First Eagle.
Mr. Williams said the firm will maintain existing offices in certain cities and may combine offices in some locations.