Deerfield Capital Management is planning to roll out five collateralized debt obligations this year including two CLOs. The Chicago firm, which manages hedge funds and CDOs, is also planning to launch two asset-backed securities and one synthetic CDO.
Deerfield, which has $8.7 billion under management with $7 billion of that in CDOs, was bought last year by Nelson Peltz's Triarc Companies. Triarc bought a 64% economic interest in Deerfield for $86.5 million and also invested $100 million to seed a credit-opportunity fund.
"We will continue to uphold a conservative approach to our CDO investments, and, in order to avoid diluting deals, we aim to put in place the right people in anticipation of another year of strong growth," said John Brinckerhoff, managing director and director of portfolio management. Each vehicle will be approximately $300-400 million, said Brinckerhoff.
The firm launched its first CDO in 2000, and now manages 17 vehicles, including six ABS, six bank debt and five synthetic. Jonathan Trutter, cio and senior managing director, leads the bank loan effort.