Flagship Capital Management, the Banc of America Securities subsidiary that manages leveraged loans, is close to completing a $404 million collateralized loan obligation. IKB Capital Corp. is acting as portfolio consultant on the deal, called Flagship CLO IV. Flagship will have sole control of the assets and trading decisions, but IKB will have input into the deal, said a source.
Ty Anderson, lead portfolio manager, said Flagship is delighted to work with IKB, but declined further comment, referring questions to IKB officials, who did not return calls by press time.
This will be Flagship's seventh structured vehicle. In addition to the Flagship series, the firm has a SERVES deal and two CLOs that were previously managed by Columbia Management Advisors. Assets under management are $2.2 billion.