ICG is moving into asset-backed lending (ABL) and has hired Steven Osborne from Wells Fargo to help the new push, PDI understands.
Osborne left Wells Fargo in the last two weeks but has not yet taken up his new role with the London-listed asset manager. Osborne was a director specialising in technology finance within Wells Fargo Capital Finance, the US bank’s ABL unit.
ICG plans to tap into the growing trend for providing loans secured against assets alongside standard senior secured cash flow loans, sources told PDI.
The alternative investment manager couldn’t be reached for comment.
Osborne did not respond to an emailed request for comment.
A number of European mid-market leveraged buyouts and refinancings have been financed with a mixture of ABL lines and cash flow loans. Last year’s refinancing of IGM Resins combined a unitranche deal from HIG Whitehorse with ABL lines provided by Deutsche Bank, though the structuring is simpler when the ABL and cashflow loans are provided by the same lender.
Last week, Investec lent £44.5 million ($63 million; €56 million) through a mix of receivables, inventory revolvers and a cash flow term loan to back the merger of BM Polyco and HPC Group.
The move is ICG’s latest business expansion. It announced last week that it has hired Babson Capital’s high-yield specialist Zak Summerscale to build out its liquid credit business. Dagmar Kent-Kershaw, current head of illiquid credit and who has been at ICG since 2007 is set to leave the firm as a result.