Guggenheim corporate credit buys beat $12bn – exclusive

The US asset manager plowed more than $12 billion into corporate credit last year across bank loans, high-yield and bridge financings, $4.5bn of that total went into directly negotiated investments.  

Guggenheim Partners’ credit activities totaled $12.2 billion last year with investments spanning bank loans, high-yield and bridge facilities.

Of the over $12 billion total, $4.5 billion went to directly negotiated investments, according to a client missive obtained by PDI. The firm said it provides financing options from $30 million to $500 million across the yield spectrum. “We are actively pursuing opportunities in large club transactions, private second liens, direct add-ons to current syndicated deals and anchor orders for corporate issuers,” outlined the alternative investment manager in the communique.  

One representative transaction cited was a $90 million first lien loan alongside a high-yield bond backing an acquisition by a commercial window manufacturer in December. Guggenheim also extended first and second lien add-on facilities at $130 million for the acquisition of a higher education software provider in December.  

Guggenheim has been raising a lot of money for direct lending investments, sources tell PDI. Most of the capital is through separate accounts though the firm is in the market with a $1.5 billion second private debt fund, as PDI previously reported

Guggenheim also recently launched non-traded business development companies (BDCs) in partnership with WP Carey. The firms have established Carey Credit Income Fund (CCIF), a master fund which is provided with capital by Carey Credit Income 2016 T, the feeder vehicle.  

The BDCs make investments primarily in large, privately-negotiated loans to US mid-market companies. WP Carey and Guggenheim seeded the funds with $50 million. The 2016 T vehicle went live at a public offering price of $9.25 per share. It has a maximum offering amount of $1 billion, according to the fund’s fact sheet

HIRING SPREE

Guggenheim is building up its private debt team. Recent hires include managing director Tara Moore in London, directors Fraser Owen-Smith and David Richman, as well as vice president Brian Seidman in the US. Moore joined from UK-based investment bank Barclays, where she was head of debt finance origination.  

Owen-Smith joined in October. He was previously a director in leveraged finance at US Bank for five years. He has also worked at Livingstone Partners and GE Capital, according to his LinkedIn profile.  

Richman came on board in September. He was previously a managing director at GE Capital and has held more junior roles at D Cubed Group, Carlyle, Fenway Partners, Brera Capital Partners and UBS.  

Seidman was a vice president at Oaktree Capital Management for seven years before joining Guggenheim this January. He has also worked as an analyst at several major investment banks. 

Todd Boehly, Guggenheim’s president, stepped down to run a media empire comprised of several publications that Guggenheim is spinning off, as reported by Variety and others. Boehly, less active in credit in recent years, was instrumental in building up the firm’s corporate credit business.  

Boehly joined Guggenheim in 2001 to manage its leveraged credit investments which grew from $3 billion to $10 billion during his tenure, according to a Bloomberg biography. He also oversaw the firm's build-out of its mid-market direct-lending platform and led the corporate credit business before taking on the role of president.  

Kevin Gundersen and Jeff Abrams co-lead corporate credit strategies in New York.