CypressTree manages or subadvises approximately $2.6bn of high yield and leveraged loan assets in seven collateralized loan obligations (CLOs) and two other funds.
The collateral management contracts for the CLOs, as well as the two other funds, were included in the sale.
Primus Guaranty’s credit protection business, which consists of Primus Financial Products’ $11.8bn portfolio of credit default swaps, is not affected by the sale.
According to Primus Guaranty, Primus Financial Products will remain part of Primus Guaranty and will continue to be managed by Primus Financial portfolio managers.
CIFC chief executive officer Peter Gleysteen said effective immediately, CypressTree’s activities will be operationally integrated within CIFC’s existing investment model. CIFC has implemented a plan to ensure a smooth, seamless transition of the management of the CLOs and other funds and their underlying investments into CIFC’s platform.
