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First Eagle to acquire THL Credit Advisors

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New York-based First Eagle Investment Management has reached an agreement to acquire THL Credit Advisors, a $17-billion asset alternative credit manager.

First Eagle, which has $99 billion in assets under management, will expand its presence in structured finance-based direct lending to middle-market firms through the acquisition by uniting the two firms’ credit-business platforms, according to a release.

THL Credit manages corporate tradable credit and direct lending to middle-market corporates funded through investment vehicles such as THL’s Wind River and Lake Shore collateralized loan obligation platforms. (THL launched its first middle-market CLO last March.)

First Eagle is a privately owned, independent investment firm that traces its history to 1864. Boston-based THL Credit was established in 2007 as the credit affiliate of private equity firm Thomas H. Lee Partners LP. THL’s primary credit underwriting office is in Chicago.

Financial terms of the transaction, which has been approved by the boards of directors of both firms, were not disclosed. It is expected to close in first quarter of 2020.

Bank of America advised First Eagle on the deal; THL Credit was advised by Sandler 0’Neill + Partners.

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CLOs CDOs Middle market