York Capital’s CLO Business Finds a Home with Kennedy Lewis Investment Management
Posted on 05/04/2021
Founded by Jamie Dinan (age 61) in 1991, York Capital Management partnered with Kennedy Lewis Investment Management LLC, an opportunistic credit manager, to form a new company called Generate Advisors, LLC. Under the partnership agreement, York’s approximately US$ 4 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 US$ 200 million of capital to be invested in the equity of Generate Advisors’ future CLOs. 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.
Azimut Alternative Capital Partners is a strategic investor in the firm Kennedy Lewis Investment Management. Kennedy Lewis was founded in 2017 by David K. Chene and Darren L. Richman. Akhter is York Capital’s sole CLO Portfolio Manager, and his team focuses on U.S. bank loan research for the purposes of its CLO platform. Akhter came from DA Capital LLC before joining York Capital.
The strategic partnership is subject to certain closing conditions.
In January 2021, York Capital Management was in talks to sell its CLO division. This is months after York left the hedge fund business and weeks before writing a letter to investors promising to double down on the asset class. Jamie Dinan is the owner of the Milwaukee Bucks. York Capital Management has only issued small number of CLOs in its history, with its first deal in January 2015.
