US-based global fund manager Sixth Street, which has more than $60 billion under management, has announced the launch of a dedicated structured products business “to further enhance its capabilities as a strategic capital partner and solutions provider at scale”.
The firm said Sixth Street Structured Products would focus on asset and platform investing across markets including commercial and residential mortgages, renewable and energy finance, consumer, infrastructure debt, transportation and commercial equipment.
Michael Dryden has joined the business as a partner to lead its expansion. Described by Sixth Street as having been the leader of “one of the largest structured finance businesses in financial services”, Dryden was formerly global head of securitised products finance at Credit Suisse. His new role will be based in New York.
“Our thematic investing approach, deep underwriting expertise and growing insurance capital base will all help drive the expansion of our presence in structured finance markets,” said Michael Muscolino, co-founder and partner at Sixth Street.
The new division adds to existing strategies dedicated to asset investing, asset-backed lending, direct-to-company financing and syndicated leveraged loan investing, which have been among the firm’s core activities since it was founded in 2009.
The firm said Sixth Street Structured Products would benefit from the knowledge, resources, and asset and liability management capabilities of Sixth Street’s insurance solutions platform, including its portfolio company Talcott Resolution, a strategic risk partner to the insurance industry.
Sixth Street is involved in a wide range of specialist financing strategies and early last year closed its second European direct lending fund on its hard-cap of €1 billion.