A Resource Capital Corp. subsidiary will purchase 100% of the ownership interests in Churchill Pacific Asset Management (CPAM) from Churchill Financial Holdings for $22.5 million, the New York-based real estate investment trust said today in a statement.
Through this acquisition, Resource Capital will acquire five CPAM-managed CLOs totaling approximately $1.9 billion in assets. Resource Capital said in the release that "it expects to earn substantial cash on cash returns on its investment."
Apidos Capital Management, a subsidiary of Resource Capital, will assist Los Angeles-based CPAM in managing the five CLOs. The transaction is expected to close this month.
"We are very pleased by the opportunity this represents for our shareholders," said Jonathan Cohen, Resource Capital president and CEO. "We should be able to achieve attractive risk-adjusted returns in an asset class where we have made a substantial profit over many years,"
Barclays Capital was the exclusive financial advisor to New York-based Churchill Financial Holdings for this transaction.
Resource Capital Corp. is a REIT specializing in commercial real estate. Its investment strategy focuses on commercial real estate related assets and, to a lesser extent, higher-yielding commercial finance assets. The firm invests in the following sectors: CRE-related assets such as whole loans, A-notes, B-notes, mezzanine loans, mortgage-related securities and real estate joint ventures, and commercial finance assets such as other ABS, senior secured corporate loans, lease receivables, trust preferred securities, structured notes and debt tranches of CLOs.
New York-based Apidos Capital Management forms part of the global credit platform of Resource America. Upon closing this transaction, Apidos and CPAM will collectively manage around $5.8 billion of speculative-grade credit assets across multiple portfolios including CLOs, credit opportunity funds and separate accounts.
