Highland Capital Management has bought ING Bank’s European loan management business ING Capital Management (ICM). The London-based firm, which has originated two CDOs under the Copernicus Euro CDO series, 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.
Dallas-based Highland has approximately $10 billion in leveraged loans. A Highland official and William Appel, managing director for ING Bank, declined comment. 
Last month, ING put its European and U.S. loan businesses ING Capital Advisors (ICA), on the block. ING is reviewing options for ICA because it is so specialized, said an ING spokeswoman (LMW, 12/27). It could not be determined whether the European business was sold for strategic reasons or the departure of key personnel. In the past year Simon Hood, who ran the unit, left for European Credit Management. His replacement, David Wilson, moved last month to Eiger Capital.
The European market though is proving attractive to U.S. loan managers and private-equity firms. Babson Capital Management bought Duke Street Capital Debt Management, while The Carlyle Group is building a European loan management firm. “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. According to a source, buying the ING platform accelerates Highland’s access to the European market, since building from scratch requires time-consuming regulatory approval.