ING has put its European loan management business ING Capital Management (ICM) up for sale. The London-based collateralized loan obligation shop is being sold separately from the U.S. loan business ING Capital Advisors (ICA), which is also on the block, said one U.S. loan participant. ING initiated the process last month for ICM and the deadline for bids was Jan. 5, he added. A separate U.S.-based portfolio manager said ING was auctioning off ICM's CLOs, rather than the whole business, which has lost key personnel.
ING is reviewing options for ICA because it is so specialized, said an ING spokeswoman (LMW, 12/27). An ING spokesman in London declined comment on ICM and it could not be determined whether the sale is due to a strategic decision from the Dutch banking giant or the departure of staff.
ICM has originated two CDOs under the Copernicus Euro CDO series and was set up in 2000 to take advantage of the potential for growth in the European loan market. The business now manages approximately ¤650 million, but in the last year Simon Hood, who ran the unit, left for European Credit Management. His replacement, David Wilson, moved last month to Eiger Capital, an investment management company specializing in the credit and ABS markets. Herman Geulovani is said to be the back-up portfolio manager, but he declined comment.
Last year, Babson Capital Management bought Duke Street Capital Debt Management, while other U.S. loan investment firms such as INVESCO have increased their European assets under management. "It's an attractive market because the spreads are a little wider and as the institutional market is only 25%, they can get good allocations," said a U.S. portfolio manager. But he also added that there is less diversification and liquidity.
Michael Hatley and Michael Campbell are the loan portfolio managers for ICA, which has more than $3.1 billion in assets under management in collateralized loan obligations and various accounts. Geoffrey Arens is managing director and ceo.
