Valcour Capital Management, a hedge fund firm founded by veterans of Aladdin Capital Holdings, is making its debut as a collateralized loan obligation manager.
The firm is marketing a $250 million managed cash flow deal dubbed Crown Point CLO, Ltd., according to a presale report published today by Moody’s Investors Service. Moody’s has provisionally assigned triple-A ratings to two tranches: $83 million of Class A1La senior secured floating rate notes due 2022 and $83 million of Class A1Lb senior secured floating rate notes to 2022.
In addition to the notes rated by Moody's, the CLO will issue five other tranches, including subordinated notes.
The presale report states that Crown Point will be Valcour's first CLO transaction and that Valcour is a "newly-established and relatively untested manager, although its senior team includes individuals that have experience in managing CLO transactions."
Valcour, based in Stamford, Conn., was founded in 2009 by George Marshman, a founder of Aladdin, and Joseph Schlim, Aladdin’s former chief financial officer. It currently has $115 million under management in two private funds, according to a regulatory filing. Last year, Valcour tapped John D’Angelo, a senior manager in the loan group at Aladdin, to manage its bank debt group.
Crown Point CLO is to be collateralized primarily by broadly syndicated first-lien senior secured corporate loans, according to Moody’s. At least 95% of the portfolio must be invested in senior secured loans, cash and eligible investments, and up to 5% of the portfolio may consist of second-lien loans and unsecured loans. At closing, the portfolio is expected to be approximately 67% ramped and 100% ramped within four months thereafter.
During the initial, two-year reinvestment period, Valcour will direct the selection, acquisition and disposition of collateral on behalf of the CLO and may engage in trading activity.