ING Capital Advisors (ICA) was seen shopping a $350 million portfolio of loans last week with bids expected as LMW went to press. The move occurs against the backdrop of an auction for the whole business that buyside sources said has been a tough sell. An ING spokeswoman declined comment and Michael Hatley, portfolio manager, did not return calls.
ING announced in December it is considering selling the overall business, which has approximately $3.1 billion in assets under management. ICA is no longer considered a core business within the insurance, banking and wealth management strategy (LMW 12/23). ING Capital Management, the European arm, was sold to Highland Capital Management earlier this year.
Several buyside shops have looked at the business, and the auction has been whittled down to a few potential buyers. But the process has proved difficult as the last collateralized loan obligation completed in the U.S. was in 2001 and some of the funds are now reaching the end of their reinvestment period. ING's CLOs include the Archimedes Funding series, Nemean CLO, and Sequils ING 1/Mincs ING.
One buysider said ING has not fully invested in the business, making it less attractive for a potential buyer. He compared this situation unfavorably to Octagon Credit Investors. When JP Morgan Partners was considering selling the asset management business, it still raised a CLO, indicating the business still had growth potential.
