November 05, 2015
Conning To Acquire Octagon Credit Investors
Adds expertise across a broad range of leading specialized credit strategies
HARTFORD, CT & NEW YORK, NY – November 5, 2015 – Conning, a leading global insurance asset management firm, today announced that it has reached a definitive agreement to acquire Octagon Credit Investors, LLC (“Octagon”), a U.S.–based manager of specialized credit asset classes with expertise in collateralized loan obligations (CLOs), bank loans and high yield bonds.
Based in New York, Octagon has more than 20 years of experience investing in below-investment grade markets, allowing Conning to expand its best-of-breed capabilities for clients globally. Octagon manages $12.8 billion in assets through its CLOs, separate accounts and commingled fund offerings on behalf of insurance companies, banks, pension funds and asset managers. Andy Gordon will continue as Octagon’s Chief Executive Officer, and the firm’s existing investment and business teams will remain in place.
“This transaction is a natural extension of Conning’s capabilities and provides our clients with access to specialized floating and fixed income asset classes that have performed well through various market cycles. Conning and Octagon share a similar culture and investment philosophy that will benefit both firms and our clients,” said Woody Bradford, Chair and Chief Executive Officer of Conning. “We look forward to partnering with Andy and the experienced Octagon team in pursuing new opportunities globally.”
Following the closing of the transaction, Octagon will operate as a subsidiary of Conning and be governed by its own Board of Directors. Collectively, the Octagon organization brings an extensive network of long-standing relationships, strong investment performance results, a focus on deep fundamental credit investing and a track record of building a world-class investment franchise.
"We are excited to join a leading, highly respected asset management firm that shares Octagon's collaborative culture, commitment to growth, and dedication to serving its clients," said Gordon. "Partnering with Conning will not only provide Octagon with additional capital to meet regulatory risk retention requirements and strengthen our position as a leading U.S. CLO manager, but will also help us develop and deliver a broader range of investment solutions to our collective global investor base. We look forward to working with Woody and the Conning team to position our business for continued growth."
The transaction is expected to close early in 2016, subject to customary regulatory approvals and closing conditions.
Broadhaven Capital Partners served as financial advisor and Morgan, Lewis & Bockius LLP served as legal advisor to Conning on this transaction. Citigroup served as financial advisor and Weil, Gotshal & Manges LLP served as legal advisor to Octagon and other sellers. Simpson Thacher & Bartlett LLP served as legal advisor to Octagon management.
Conning (www.conning.com) is a leading investment management company for the global insurance industry, with $93 billion in assets under management as of September 30, 2015, through Conning, Inc., Conning Asset Management Limited, Cathay Conning Asset Management Limited, Goodwin Capital Advisers, Inc., and Conning Investment Products, Inc. that are all direct or indirect subsidiaries of Conning Holdings Limited (collectively “Conning”) which is one of the family of companies owned by Cathay Financial Holding Co., Ltd. a Taiwan-based company. The company's unique combination of asset management, risk and capital management solutions and insurance research helps clients achieve their financial goals through customized business and investment strategies. Founded in 1912, Conning provides clients with innovative solutions, leveraging its global capabilities, investment experience, proprietary research and risk management technology. Headquartered in Hartford, Connecticut, Conning also delivers its services globally through its offices in New York, London, Cologne, Hong Kong and Tokyo.
About Octagon Credit Investors
Octagon Credit Investors is a leading specialized credit investment management firm. Founded in 1994, the firm has over 20 years of experience managing non-investment grade corporate credit securities on behalf of institutional and high net worth investors. As of October 31, 2015, Octagon manages $12.8 billion in assets.Octagon’s long-tenured team uses rigorous fundamental credit analysis and a disciplined portfolio management process to identify attractive opportunities across asset classes, sectors and issuers. Octagon is headquartered in New York, New York and employs 48 professionals.