Katonah Capital should complete the transfer of Katonah Fund I through VI by mid-June, sources said. The new managers are acting as subadvisers. E.A. Kratzman, principal and portfolio manager, was hired two weeks ago to manage Katonah's existing collateralized loan obligation business and raise new CDOs and/or CLOs. The first fund is callable and the amount Katonah will hold on to has been estimated as high as $200 million, but one buysider said that number was overblown and could be lower than $50 million. Calls to Kratzman and Chris Lacovara, principal at Kohlberg & Co., the parent of Katonah, were not returned.
Katonah replaced portfolio managers for all the funds after receiving approval from the funds' shareholders and noteholders. Sankaty Advisors will take over the second, third and fourth deals, INVESCO Senior Secured Management has become the replacement for the fifth and Blackstone Debt Advisors for the first and sixth.
Kratzman was previously a managing director and head of collectivized loan obligation portfolio management in the New York office of Rabobank International. There he led a team whose CLO platform managed over $1 billion in assets.