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Craig Joins Middle Market Private Equity Co. Hidden Harbor, from HIG

Hidden Harbor Capital Partners has hired Brett Craig to source middle market investments. He joins as principal.

hidden harbor logoCraig most recently worked at H.I.G. Capital, where he sourced and managed investments, including distressed buyouts and add-on acquisitions. He previously worked at Quad-C Management and Blackstone Group.

Hidden Harbor Capital Partners, based in Fort Lauderdale, Fla., targets companies generating annual revenue of $50–500 million and EBITDA up to $25 million for control investments. The firm’s co-founders are John Caple and David Block. — Abby Latour

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This story first appeared on www.lcdcomps.com, an offering of S&P Global Market Intelligence. LCD’s subscription site offers complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.

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Breakwater Expands Middle Market Direct Lending with Chung Hire

BreakwaterWalter Chung has joined Breakwater Investment Management to source and manage lower middle market direct loans to private companies and equity investments.

He is based in Los Angeles. He joined the firm last month as director.

Chung joined from THL Credit’s Direct Lending platform.

Previously, Chung worked at Los Angeles–based investment bank Libra Securities, on private placements and M&A transactions. He also was part of the corporate finance department of FTI Consulting and worked in the assurance and advisory practice of Ernst & Young.

Co-managing partners of Los Angeles–based Breakwater Investment Management are Eric Beckman and Saif Mansour. —Abby Latour

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This story first appeared on www.lcdcomps.com, an offering of S&P Global Market Intelligence. LCD’s subscription site offers complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.

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McCready Becomes Chief Investment Officer at NewStar

Dan McCready will become chief investment officer of NewStar Financial, replacing Peter Schmidt-Fellner, who is retiring.

newstar logoMcCready had been chief credit officer of NewStar, which he joined in March 2013 for that role. He has led NewStar’s leveraged finance credit team. Prior to NewStar, McCready was chief credit officer at CIT Corporate Finance. He also worked at GE Capital, CIBC World Capital Markets, Bankers Trust Company, and Bank of America.

Schmidt-Fellner was a founder of NewStar, and had been chief investment officer since the company’s inception in 2004. He will leave NewStar’s board, but remain an external advisor.

NewStar Financial, based in Boston, is a commercial finance company with a middle market direct lending business and asset management. — Abby Latour

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This story first appeared on www.lcdcomps.com, an offering of S&P Global Market Intelligence. LCD’s subscription site offers complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.

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TPG Specialty urges TICC shareholders to vote for its board nominee

TPG Specialty Lending, the BDC that lends to middle market companies, stepped up its fight for rival TICC Capital today as the two sides geared up for a proxy battle.

In a letter dated July 13, TPG Specialty urged TICC Capital shareholders to vote in favor of board nominee T. Kelley Millet at TICC Capital’s annual meeting on Sept. 2. TPG Specialty has tried unsuccessfully to acquire TICC Capital. Millet is CEO of Banca IMI Securities Corp.

TPG is calling to end an ineffective investment advisory agreement between TICC Capital and TICC Management. TPG says TICC Capital shares have grossly underperformed the S&P 500 and the BDC Composite Index since TICC Capital’s IPO in 2003, driven by a 57% decline in NAV. In the meantime, TICC has paid fees of over $140 million to its external adviser and management.

TICC Capital has pursued an unsustainable dividend policy, paying a dividend far exceeding net investment income, TPG Specialty said.

“Do not be fooled! These payments are not comprised solely of investment returns; stockholders are being paid back in part with their own money,” the letter to TICC Capital shareholders said. “More importantly, this strategy has unfortunately resulted in almost irreversible value destruction of NAV per share that will only continue without quick and decisive action.”

TICC Capital has countered with its own board nominee, Tonia Pankopf, who is up for re-election this year. In a letter to its shareholders yesterday, TICC Capital sought support from shareholders to vote in favor of Pankopf and reject TPG Specialty’s plan to terminate its investment advisory agreement with TICC Management.

TICC Capital’s executive officers and directors together hold 5.7% of common stock, the proxy statement filed on July 12 showed. Ahead of the previous shareholder meeting, the board owned 1.8% of common stock, a proxy filed in April 2015 showed.

TICC Capital has also been fighting on another front. NexPoint Advisors, an affiliate of Highland Capital Management, submitted a proposal to cut fees and invest in TICC Capital. In the letter yesterday, TICC Capital told shareholders not to support any potential proposal from NexPoint.

TPG Specialty Lending’s investment portfolio reflects its ongoing interest in TICC. As of March 31, TPG owned 1.6 million TICC shares, representing 0.9% of its portfolio.

TPG has repeatedly said that TICC’s external manager has failed the BDC and, given the chance, TPG could improve returns for shareholders.

“We remain committed to affecting change at TICC,” co-CEO and Chairman Josh Easterly said in an earnings call in May. — Abby Latour

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DeMilt Joins Z Capital Corporate Development, from Oaktree Capital

David DeMilt joined the corporate development team at investment manager Z Capital Group, covering North American investors.

He reports to CEO and founder James Zenni, and will be based in New York. DeMilt joins as managing director.

z capital logoPreviously, DeMilt was a senior vice president at Oaktree Capital Management, where he developed and managed middle-market institutional investor relationships in the eastern U.S., according to his LinkedIn profile. He has worked at Oaktree Capital since January 2012.

DeMilt has also worked at Goldman Sachs, Fitch Ratings, CIBC, and HSBC in various private equity and credit strategy roles. — Abby Latour

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This story first appeared on www.lcdcomps.com, an offering of S&P Global Market Intelligence. LCD’s subscription site offers complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.

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Martini Departs Role of Financial Sponsors Head at Apollo BDC

Arthur Martini, the U.S. head of financial sponsors at Apollo Capital Management, has left the firm, sources said.

Martini joined Apollo Capital Management in August 2013, according to his LinkedIn profile. He was part of the investment team at the BDC, Apollo Investment Corp.

Prior to Apollo, Martini worked at Barclays Private Credit Partners, Cerberus Capital Management, and J.P. Morgan Chase. — Abby Latour

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This story first appeared on www.lcdcomps.com, an offering of S&P Global Market Intelligence. LCD’s subscription site offers complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.

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Citi Names Raja as Head of EMEA High Yield Trading

Citi have announced that Amit Raja has become Head of EMEA High-Yield Trading, in addition to his current responsibilities as Global Head of Distressed Trading and EMEA Head of Par Loan Trading, effective immediately.

This follows news that David Cohen, the now previous Head of EMEA Flow Credit Trading, will be leaving Citi. To ensure continuity, Cohen will continue to manage the investment-grade trading desk until the end of June, and is involved in the succession process. Cohen joined Citi in New York in 2010. — Luke Millar

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This story first appeared on www.lcdcomps.com, LCD’s subscription site offering complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.

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Versa Media Capital nets $100M financing from Crayhill Capital

Versa Media Capital received a $100 million financing facility from Crayhill Capital Management.

Versa Media Capital is a newly formed company that will provide bridge financing for independent film and television production, as well as mezzanine, gap, and tax credit loans. The team expects to structure and close financing for 15–20 projects per year.

The company was founded by Jeff Geoffray, Jeffrey Konvitz, and Daniel Rainey.

Geoffray co-founded film financing company Blue Rider Finance, which underwrote and financed over 70 transactions on films with over $700 million in production costs. Konvitz is an entertainment attorney. Rainey is a private equity investor and attorney.

New York–based Crayhill Capital Management is an alternative-asset-management firm. — Abby Latour

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Mitsubishi UFJ Financial Taps Grant Moyer as Head of Leveraged Capital Markets

Mitsubishi UFJ Financial Group announced today that Grant Moyer has joined the firm as head of leveraged capital markets for the securities business in the Americas.

Moyer joins Mitsubishi UFJ Securities from Goldman Sachs, where he spent the last decade in the leveraged finance division, most recently as a managing director.

Moyer will be based in New York and will report to Paul Young, international head of capital markets at Mitsubishi UFJ Securities, and Jeffrey Knowles, head of syndications at MUFG Union Bank.

The leveraged capital markets business was established earlier this year to combine MUFG’s capital markets and leveraged finance division for the structuring and delivery of all debt products—including syndicated bank loans, institutional loans, and bonds—from one business unit.

Prior to his time at Goldman Sachs, Moyer spent 10 years at Bank of America and its legacy firms in various leveraged acquisition finance roles. — Rachelle Kakouris

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This story first appeared on www.lcdcomps.com, LCD’s subscription site offering complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.

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Octagon Hires McDermott from Deutsche Bank

Octagon Credit Investors has hired Doug McDermott as a managing director of business development, effective on May 31. McDermott will work with John Dudzik and George Duarte in sourcing and cultivating new business opportunities for Octagon as well as Conning, Octagon’s majority shareholder.

McDermott was previously a managing director and head of loan sales at Deutsche Bank, where he was also an investment banker in the firm’s Financial Sponsors and Leveraged Finance Groups. — Andrew Park 

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This story first appeared on www.lcdcomps.com, LCD’s subscription site offering complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.