Michael Levitt, an ex-partner at Hicks, Muse Tate & Furst is reportedly buying up assets for his new investment shop, Stone Tower Capital, a new buyside firm formed to manage assets through CLO vehicles. Levitt is chairman of the New York-based buyside outfit, which initially intends to manage an approximately $600 million loan portfolio, according to market sources. Officials at Stone Tower declined comment on plans for a new CLO, how many people are now working there and when the firm began buying assets. Questions were referred to Levitt, who did not return calls for comment by press time.
Levitt was responsible for dealing with investment and commercial banks worldwide and led some of the most successful deals for Hicks, Muse. However, he resigned from Hicks, Muse in August 2001, reportedly after the firm lost more than $500 million in telecommunication investments. Prior to Hicks, Muse, Levitt was a managing director at Smith Barney. Before this, he worked at Morgan Stanley, where he was deputy head of investment banking.