Nassau RE to expand credit and CLO businesses

The asset manager created a new credit vehicle to focus on CLOs and plans to add more real estate debt offerings.

Nassau RE is cutting itself a larger slice of the credit market pie.

The Hartford, Connecticut-based asset management firm announced that it is expanding its credit strategy by launching Nassau Private Credit. This new platform will allow the firm to ramp up its stakes in the CLO market, according to a statement.

The firm will additionally implement floating-rate loans into its existing commercial real estate loan portfolio, which is through its Nassau CorAmerica Brand investment vehicle. Nassau RE also said it would expand its private equity and co-investment platforms.

Nassau Private Credit will invest in debt and equity tranches of collateralised loan obligations for Nassau RE and third-party investors. To lead this new credit platform, the firm hired Bruce C. Brittain and Russell C. Pemberton to serve as managing directors and lead portfolio managers.

Brittain was formerly a co-founder and principal at Morningside Credit Partners for approximately two years. Prior to that, he was a managing director at South Street Securities for more than four years, according to his LinkedIn profile.

Pemberton was formerly the head of CLO Syndicate and Origination at RBC Capital Markets for more than five years. Prior to that, he was a director at the Royal Bank of Scotland for more than four years, his LinkedIn profile shows.

This CLO expansion is meant to complement the firm’s existing CLO management business, Nassau Corporate Credit, which has closed four CLOs since 2017 and has more than $2 billion in assets under management.

The firm declined to provide immediate comment beyond the press release.

Nassau RE was founded in 2015, anchored by Golden Gate Capital. The firm offers strategies across insurance, reinsurance, distribution and asset management. It has more than $20 billion of assets under management.