Investment Management Corporation of Ontario Picks Antares Capital to Build Sponsored-Backed Loan Portfolio
Posted on 10/29/2021
Antares Capital LP is a provider of financing to middle market private equity-backed companies in North America. The Investment Management Corporation of Ontario (IMCO) is investing US$ 500 million with Antares Capital. IMCO’s platform investment forms the foundation of the direct lending component of its Global Credit strategy and aims to build a diverse portfolio of sponsor-backed loans in the middle-market, focusing on U.S. and Canadian borrowers. The portfolio will be diversified across industry and sponsors and will target 75 to 100 issuers. IMCO selected Antares as its private debt manager following a competitive process.
IMCO is keen on getting more exposure to private debt as they believe it provides stable returns and aligns well with their tolerance for illiquidity and their long-term investing horizon. IMCO’s Global Credit portfolio invests across a range of public and private credit market segments including corporate bonds and loans, real estate and infrastructure debt, off-balance sheet financing loans, emerging markets debt, high yield bonds and leveraged loans to generate higher risk-adjusted returns than traditional fixed income, adding diversification benefits to a total portfolio for IMCO’s public sector clients. The Global Credit program is differentiated by its broad approach to portfolio construction, making strategic allocations to liquid/illiquid securities, geographies, and across the risk spectrum.
As of December 31, 2020, IMCO’s Global Credit portfolio had US$ 4.6 billion in assets under management. The portfolio is expected to grow to US$ 8 billion or more by 2025.
In October 2021, Antares Capital announced that Timothy Lyne, founding partner and current Chief Operating Officer (COO), will succeed David Brackett as Chief Executive Officer (CEO). Brackett announced that he will be retiring from his role as CEO on December 31, 2021, and will remain with Antares in an advisory capacity.
CLO Market
Issuers are attempting to kick up the pace for collateralized loan obligation sales. In 2022, The London interbank offered rate (LIBOR) must be retired for new leveraged loans.
