NEW YORK--(BUSINESS WIRE)--Medalist Partners, LP (“Medalist Partners” or “Medalist”), an alternative asset management firm specializing in asset-based private credit, structured credit and CLOs, announced today that it has accelerated a buyout option with JMP Group LLC for its remaining stake in Medalist Partners Corporate Finance, LLC, a CLO platform with approximately $1.2 billion in assets under management.
Medalist has further announced the formal incorporation of ESG criteria into its future CLO investment mandates on the platform. While largely consistent with an approach already being followed by the team, as part of the formal ESG initiative Medalist has adopted specific guidelines which will be factored into the investment process. Medalist’s CLO platform will continue to be led by Craig Kitchin, Jeremy Phipps, and Shawn O’Leary.
“We are excited to exercise the buyout of JMP’s remaining ownership stake ahead of schedule,” said Greg Richter, CEO of Medalist Partners. “JMP has been a great partner in the CLO business and we thank them for their support. However, given the significant demand we are seeing from investors seeking high quality access to the CLO market, we believe assuming full control of the platform affords us greater flexibility in scaling the business and facilitating new strategic partnerships going forward.”
Regarding the incorporation of ESG screening in future CLOs, Craig Kitchin, President of Medalist Partners Corporate Finance added, “The decision to screen leveraged loans for ESG factors in future CLOs reflects growing investor demand for structures that consider these issues, as well as our belief that such practices will ultimately reward investors with superior performance. We believe the trend towards ESG investment will continue to gain momentum, and areas perceived as contradictory to ESG principles may become riskier investments as a result.”
Lastly, Michael Ardisson, President & COO of Medalist added, “We believe this transaction ideally positions our CLO business for continued growth, with our seventh CLO expected to launch later this year. With positive momentum across the broader Medalist platform, including our asset-based private credit business continuing its industry leading performance, it is an exciting time for our firm.”
Lowenstein Sandler LLP served as legal counsel for Medalist Partners on the transaction.
About Medalist Partners:
Medalist Partners is an alternative investment manager with approximately $2 billion in AUM across strategies in asset-based private credit, structured credit and CLOs. Headquartered in New York, the 23-person team is led by partners Greg Richter, Michael Ardisson, and John Slonieski. Medalist’s clients include pensions, endowments, foundations, banks, fund of funds, family offices and HNW individuals. The business and track record were started within Credit Suisse and Candlewood Investment Group prior to being spun-out as an independent, partner-owned firm in 2018. The Medalist team has extensive experience in asset finance, structured products, investment banking, securitization, and credit underwriting. For more information, visit www.medalistpartners.com.