Aladdin Capital Management (UK), the London office of Aladdin Capital Management, is pre-marketing its first European collateralized loan obligation. The deal, called Hudson CLO I, led by Bear Stearns, is expected to be about E300 million. George Marshman, a principal, declined comment.
Last April when Aladdin was looking to set up the firm, Marshman said it was based on deal flow and where assets are pricing. "I think there is less institutional participation in the European market as compared to the U.S. market [and this] is really an effort to diversify and build a franchise, and to be involved in and do more deals," he said at the time (CIN, 4/3).
The firm is expected to launch the rest of the capital structure through a road show early next month and price it Feb. 26. The equity piece is expected to be about 8-9% and the CLO will have a bucket for second liens. It has also mandated Barclays Capital for Hudson CLO II, expected to be about E300-350 million. It is currently warehousing that portfolio and it is expected it will come to market in April or May.
Peter Allan and Richard Etheridge are the lead portfolio managers in London, along with a team of four analysts. It is expected the firm will be looking to hire additional analysts in Europe. It hired Allan from NIB Capital Bank last spring (4/3). He started May 8. Aladdin hired Etheridge from Dresdner Bank.
