Antares Capital is increasing into the broadly syndicated mortgage market, saying it plans to construct an funding staff of seven to begin.
The agency has employed Seth Katzenstein to steer the enterprise, naming him head of broadly syndicated loans and a managing director. Katzenstein can be based mostly in New York and studies to Vivek Mathew, the agency’s head of asset administration.
“The plan is to determine a devoted staff of seven skilled funding professionals, supported by shared infrastructure sources throughout the agency and scale the enterprise over time,” mentioned Katzenstein, who may also be a part of Antares’ BSL funding committee.
Katzenstein joins Antares from Intermediate Capital Group plc (ICG). At ICG, Katzenstein constructed a US liquid credit score platform and was head of US loans and excessive yield. He managed greater than $6 billion throughout 20 funds. Previous to ICG, he labored at Black Diamond Capital Administration LLC, GSC Group and Salomon Smith Barney.
“That is an advantageous time for Antares to develop into the BSL market. We do not personal legacy BSL property and have a possibility to assemble clear portfolios for our traders,” mentioned Katzenstein in an emailed assertion in the present day.
The transfer was a logical extension of the agency’s core direct lending enterprise, he mentioned.
“The energy of our current center market origination and center market CLO platforms offers important expertise and relationships, which helps a pure extension into broadly syndicated loans,” Katzenstein mentioned. “Increasing into the broadly syndicated mortgage market will permit Antares to broaden its model recognition and investor base and improve property beneath administration.”
Requested in regards to the timing of the transfer, Katzenstein mentioned: “We do not time the market. Our skillset is investing in good-quality firms with intrinsic worth that may repay their loans even in instances of stress.”
Lately, a number of conventional syndicated mortgage arrangers have expanded their platforms to incorporate non-public credit score.
The corporate’s marketing strategy is anchored in issuing broadly syndicated mortgage CLOs, with Antares retaining a majority of the fairness capital for the preliminary CLOs. Over time, Antares Capital plans to diversify the BSL platform into co-mingled funds and individually managed accounts.
Antares is recruiting for the staff each internally and externally, which “will allow us to scale the enterprise rapidly whereas serving to to make sure that the brand new platform is aligned with the agency’s vibrant and inclusive tradition,” mentioned Katzenstein.
The announcement comes on the heels of different modifications on the agency. Earlier this month, Antares appointed Mike Hynes and Doug Cannaliato as co-heads of originations, efficient Jan. 1, 2023. The 2 report back to Tim Lyne, who’s CEO of Antares Capital.
Antares Capital had greater than $55 billion of capital beneath administration and administration as of June 30, 2022.
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