Berkshire Capital advises Hildene on CLO sale

The boutique investment bank worked with the credit manager on the sale of four CLOs to Fortress. Hildene has now shut down its CLO business.

Berskhire Capital revealed that it worked with Hildene Leveraged Credit on the sale of four CLOs to Fortress Investment Group. The CLOs had $1.4 billion in combined assets, a statement from Berkshire said. Hildene is no longer managing CLOs. The parent Hildene Capital Management otherwise oversees hedge funds focused on sub-investment grade credit.

The CLOs were securitised in January 2014, June 2014, December 2014 and August 2015. The first two had a five-year term, while the latter two were for four years. The CLO team at Hildene has been disbanded, PDI understands.

Terms of the deal weren’t disclosed and a Fortress spokesman didn’t return a call. Fortress manages CLOs already within its credit group, which Peter Briger oversees in San Francisco.

Ted Gooden, managing director at Berkshire, has recently worked with several credit managers on CLO transfers, including the sale of Regiment Capital Advisors’ four CLOs to Sankaty Advisors and the sale of Silvermine Capital Management to Man Group. 

Smaller CLO shops in the US have been selling CLOs or getting out of the business lately as the deadline to comply with risk retention approaches in December. Smaller firms often don’t have enough capital on their balance sheets to hold the risk retention interest.