Highland Capital Management Europe
The collateralized debt obligation manager was praised for its cool handling of CDOs in the current distressed market. "Despite the difficult market conditions, Highland was able to service assets effectively to avoid defaults," noted one securitization lawyer in London. Even during the credit crunch the manager was still able to get deals printed. This June it closed the E443.5 million ($687.5 million) Highlander Euro CDO IV, a European CLO backed by senior secured loans, 90% of which are first-liens. The deal was brought to the market by Citigroup Global Markets.
Babson Capital Europe
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| Ian Hazleton |
A regular in the collateralized loan obligation space with E7 billion ($11 billion) in assets under management, Babson Capital Europe was highlighted by market participants for its steady management of CDOs over the rocky past year. And even in the midst of the credit crisis, it was able to launch a tap issuance of the Rockall CLO, a E836 million ($1.3 billion) European market value CDO originally closed in 2006. Chief executive Ian Hazleton heads the team of 25 investment professionals in London.
Cairn Capital
While CDO manager replacements have been the talk of the industry for months, only a handful of managers have actually stepped up to the task. Cairn has carved out a niche in Europe as the only manager to do so to date. Even more significantly, the manager has taken over mandates of companies based in the U.S., leveraging its name abroad and strong U.S. and European ABS businesses. As a result, in April Cairn took over the $1.2 billion White Marlin CDO after Stamford, Conn.,-based Sailfish Capital Partners exited the CDO business. And just this month it emerged Cairn will also replace Minneapolis, Minn.-based Long Lake Partners on the $600 million Stillwater 2006-1.
Cairn is also seen as a savvy credit manager, rejiggering its Cairn High Grade Funding I structured investment vehicle last August when other SIV managers were hoping the credit crunch would just go away. Cairn has also been appointed advisor to the Golden Key SIV formerly run by Geneva-based asset manager Avendis. Cairn's executive management committee is composed of David Henriques, David Littlewood, James Starkey, Paul Campbell, Robert Pierce Jones and Tim Frost.