West Gate Advisors, a subsidiary of Metropolitan West Asset Management (MWAM), has bought ING Capital Advisors, concluding an auction that began last December. Richard Hollander, chairman and ceo of holding company Metropolitan West Financial, said prior to the acquisition MWAM managed high-yield and fixed-income assets, but had no dedicated leveraged loan group. The acquisition of the ING team broadens the range offered to clients across the capital structure to include distressed, high yield and bank loans, according to BW sister publication Loan Market Week.
The ING management team, comprising Mike Hatley, Mike Campbell and Graydon Wilcox, will stay on as principals of the newly formed entity called West Gate Horizons. They will also receive partial ownership. "They've made a commitment and will be with us," said Hollander. In addition to launching collateralized debt obligations, the firm will manage separate accounts and a commingled fund.
ING's loan business, which has $2.1 billion in assets under management, was no longer considered a core business within the insurance, banking and wealth management strategy of ING Wholesale. ING Capital Management, the European arm, was sold to Highland Capital Management earlier this year.
One potential buyer said an issue of concern was that several collateralized debt obligations managed by ING were nearing the end of their reinvestment periods. Indeed, one CDO was reportedly liquidated in a $350 million auction in May.
Hollander declined to comment on whether ING had neglected the business, the auction process and the price paid for the business. He said Metropolitan West looks to back good managers and then assists them with infrastructure, such as compliance and marketing, enabling the management to focus on managing the assets. "We get behind great credit people that know their trade."
