CVC acquires Northport Capital

The sub-investment grade credit managers spent $247m as part of an effort to strengthen its transatlantic platform. 

CVC Credit Partners has added to its direct lending capabilities by acquiring  Northport Capital, Resource America's North America-focused direct lending subsidiary.  

CVC announced the deal on Thursday (5 August) and said transaction was completed in partnership with a fund managed by Coller Capital and will bring assets under management by CVC's global direct lending strategy to approximately $1 billion. According to Resource Capital's second quarter earnings report released Monday (1 August), Northport was sold for $247 million. The CVC announcement did not list a price.

“We already had an established European private debt platform that we have been growing and the US was a logical next step for us,” CVC Partner Tom Newberry (pictured) told PDI . “We were looking to do something with a team that had experience in the space and had a successful track record of investing in the North American mid-market,” he said.

Newbury further explained that the Northport acquisition is designed to allow CVC to respond to increased banking regulation and increased demand for direct lending, trends the firm expects will continue on both sides of the Atlantic.

 “We are seeing more frequently, not just in the mid-market, but also in the larger-cap market, situations where sponsors or other users of credit are looking to negotiate directly with end-buyers of credit rather than going through banks,” Newberry said. “For us, this is a logical extension into that market to try and take advantage of the opportunities that we think are going to be developing over the next few years.”

CVC Credit Partners is the credit management business of CVC and has $14.4 billion in assets under management across distinct performing credit, private lending and special situations strategies.

New York-based Northport is a direct lender to mid-market companies in North America that has closed more than 40 transactions since 2014.

Resource Capital is a subsidiary of Resource America, a real estate and credit focused alternative asset manager with over $20 billion of gross assets under management. The firm manages assets for institutional investors and high net worth investors and maintains offices in New York, Philadelphia, Los Angeles, London, Singapore and Sydney.