York Capital Management (York), a global private investment firm, and Kennedy Lewis Investment Management (Kennedy Lewis), an opportunistic credit manager, have formed a strategic partnership to form a new entity to be called Generate Advisors.
Under the partnership agreement, York’s approximately USD4 billion Collateral Loan Obligation (CLO) business and team, led by Rizwan Akhter, will transition to Generate Advisors and continue to manage York’s current CLO portfolio as well as any future CLOs issued by Generate Advisors. Kennedy Lewis will be investing in Generate Advisors and has committed at least USD200 million of capital to be invested in the equity of Generate Advisors’ future CLOs.
“We are pleased to partner with Kennedy Lewis to continue to grow our strong CLO franchise,” says Jamie Dinan, Founder and CEO of York. “Over the past six years, York has demonstrated its ability to scale our issuance and meet the needs of investors. We are confident that with Kennedy Lewis’ strategic partnership and equity commitment, we will further our ability to execute successful transactions in today’s market environment and for years to come.”
“The opportunity to support and scale a top CLO manager has been a goal of Kennedy Lewis’ growing credit platform since its early days,” says David Chene, Co-Founder of Kennedy Lewis Investment Management. “The ability to do so alongside such a well-regarded asset manager as York, to partner with a former colleague in Rizwan and his exceptional team, and bring in the support of our strategic investor Azimut Alternative Capital Partners is the ideal setup for Generate Advisors’ future success.”
Akhter will manage Generate Advisors. He and Bill Vrattos, York’s Chief Investment Officer, will be joined by representatives from Kennedy Lewis to form the CLO Investment Committee. Messrs. Akhter and Vrattos will join Generate Advisors’ Board of Managers. David Chene and Darren Richman, Co-Founders of Kennedy Lewis, and Doug Logigian, President of Kennedy Lewis will join Messrs. Akhter and Vrattos in managing Generate Advisors and will serve on the Board.
“We greatly appreciate York’s support and sponsorship of our business since inception and are excited by this new strategic partnership, which provides our CLO platform with strong momentum for its next stage of growth,” says Rizwan Akhter. “We look forward to working closely with all our investors and stakeholders as we continue to build our business.”
The strategic partnership is subject to certain closing conditions.
