Investcorp, a global provider and manager of alternative investment products, has finalised its acquisition of a majority interest in CM Investment Partners (CMIP), which acts as the investment adviser to Investcorp Credit Management BDC, (formerly known as CM Finance Inc).
The transaction was first announced in June 2019. Investcorp Credit Management BDC, a specialty finance company that has elected to be regulated as a business development company (BDC), invests primarily in the debt of US middle-market companies. Additional terms of the transaction have not been disclosed.
Under the deal, CMIP will form part of Investcorp’s Credit Management (ICM) business, further driving Investcorp’s growth strategy with opportunities for growth in Private Credit, including the BDC space. The acquisition marks Investcorp’s entry into middle market lending in the US, allowing Investcorp to reach a new market segment.
As part of the acquisition, Chairman and Chief Executive Officer of Investcorp Credit Management BDC, and Co-Chief Investment Officer of CMIP, Michael Mauer, will become Co-Head of Investcorp Credit Management US alongside Jim Feeley, who currently serves as Co-Head of Investcorp Credit Management US Both Jim Feeley and Michael Mauer will report to Jeremy Ghose, Managing Director, Head of Investcorp Credit Management.
“We are excited to officially welcome Michael Mauer and the CMIP team to the ICM group as they bring years of experience navigating the middle-market lending space,” says Jeremy Ghose, Managing Director, Head of Investcorp Credit Management. “This acquisition aligns with our broader strategy of providing a diverse and full platform across the alternative asset management spectrum, and marks our entry into the BDC segment.”
Investcorp Credit Management BDC, Inc. invests primarily in middle-market companies that have annual revenues of at least USD50 million and EBITDA of at least USD15 million, focusing on companies with leading market positions, significant asset or franchise values, strong free cash flow and experienced senior management teams.
“We are delighted to formally join the global Investcorp Credit Management platform,” says Michael Mauer, Co-Head of Investcorp Credit Management US. “Through our combined talents and expertise, we are confident this relationship will enable us to provide even more opportunities to Investcorp’s existing client base.”
