NEW YORK, Sept 19 (LPC) - Tetragon Credit Income Partners has hired Scott Snell, the former co-head of BlackRock’s US Collateralized Loan Obligation (CLO) business, as it considers new investments.
The firm, which has typically purchased the most junior tranche of CLOs, the equity slice, is considering investing across the capital structure, said Snell, who joined Tetragon last week as a portfolio manager.
It is “bolstering the team to diversify into different product offerings,” he said.
Tetragon may set up separately managed accounts or other opportunistic funds to invest in CLO debt, potentially in both the US and Europe, as soon as this year, Snell said. The timing will depend upon demand and investment opportunities.
“It would be a different type of investment for us, but a natural extension of what we’ve been doing,” said Mike Pang, a portfolio manager at Tetragon. “We believe we’re patient and thoughtful in how we roll out new products, but we think this is a natural extension of our expertise.”
The US CLO market is set for a historic year with Wells Fargo forecasting a record US$150bn of issuance in 2018, surpassing the previous high of US$123.6bn in 2014. There has been US$94.6bn arranged this year, according to LPC Collateral data.
Snell, who is based in New York, reports to Stephen Prince, head of Tetragon Financial Group Asset Management.
He joined BlackRock in 2012, previously serving as a principal at Oak Hill Advisors where he traded CLOs and other structured credit products, according to his biography on the BlackRock website. (Reporting by Kristen Haunss Editing By Jon Methven)