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Collateralised Loan Obligation manager acquisition search. Promethion has undertaken extensive industry research on behalf of a client as part of an acquisition search for leading managers in the CLO space.
The sector had undergone significant change in the aftermath of the credit crisis in 2007 and our client was interested in identifying managers who would benefit from joining a larger group with better economies of scale and superior access to capital to expand their assets under management.
The objective was to identify market-leading acquisition targets which would provide synergies with the client's existing business and facilitate expansion into Europe.
The universe of CLO managers was researched according to key criteria, including:
Target's position in the sector
Assets under management
Track record and historical performance indicators
Type and structure of CLOs and credit funds managed
Depth of credit research and analytical resources
Quality of CEO and management team
Operational processes and support functions
Promethion was able to identify a group of leading CLO managers which met the client's criteria in terms of funds under management, synergies with its existing business and historical track record.
The information was then applied to estimate a valuation range using various metrics to provide the client with an indication of possible purchase price if the acquisition were to proceed.