McDonnell Investment Management has agreed to sell McDonnell Alternative Credit Strategies, LLC, its senior debt credit manager subsidiary, to THL Credit Advisors LLC ("THL Credit Advisors"), the credit affiliate of Thomas H Lee Partners, LP
The Alternative Credit Strategies group joined McDonnell in 2004 and manages approximately USD2.5 billion in assets. Its 22 investment professionals and employees will transition to THL Credit Advisors. Terms of the transaction have not been
"We believe the THL platform offers a great strategic fit for the Alternative Credit Strategies group," says Edward A Treichel, President and CEO at McDonnell. "At the same time, this transaction will allow us to concentrate the firm’s resources on our traditional fixed income portfolio management efforts."
"The expansion of THL Credit Advisors into syndicated high yielding assets, including syndicated bank loans, is a natural extension of our direct lending middle market junior capital platform," says James K Hunt, CEO and CIO of THL Credit Advisors. "The combination will allow us to leverage the industry knowledge and expertise of the McDonnell Alternative Credit Strategies team with our existing middle market investing teams, creating a more scaled and integrated business to serve the needs of our clients."