Rothschild buys CLO manager West Gate

Rothschild will manage a combined portfolio of €3.3 billion in private debt as a result of the merger.

Rothschild Merchant Banking has bought LA-based credit manager West Gate Horizons Advisors, the firm said.

The purchase of West Gate means RMB now manages €3.3 billion in private debt.

West Gate, which specialises in leveraged loans and has $1.5 billion in assets under management across five collateralised loan obligation structures, becomes a wholly-owned subsidiary of Rothschild North America under the acquisition. Mike Hatley and Gray Wilcox will continue to lead the operation.

The deal combines West Gate’s and RMB’s expertise of US leveraged loan credit and European senior leveraged loan credit respectively.

West Gate will benefit from the Rothschild Group’s global resources including distribution network, banking relationships and financial resources, and RMB with a global credit platform and the ability to offer a broader portfolio of assets to both European and US investors, in addition to its funds, separately managed accounts and CLOs, Rothschild said.

The combined credit group will manage European funds, US funds and global funds with a product offering including unlevered credit funds, multi-strategy funds and CLO vehicles. 

“We are especially pleased to welcome Mike Hatley and the team to Rothschild and we are excited about all the new opportunities we can leverage as part of a global group,” Mike Clancy, co-head of private credit management at RMB, said.

Mike Hatley commented: “We are delighted to be joining Rothschild and believe our investors will derive real benefit from being part of such a prestigious institution as Rothschild.”

Rothschild was advised by GreensLedge Capital Markets, a US investment bank specialising in structured finance.