Bain Capital Credit, formerly known as Sankaty Advisors, and Deutsche Bank (acting as co-investor, financier and advisor), announced today that they have signed an agreement to acquire GE Capital's (“GE”) Australian Commercial Finance portfolio. Terms of the private transaction are not disclosed.
The portfolio has in excess of A$2 billion of exposure to five different asset pools, including debtor finance, corporate aviation finance, leveraged finance, equipment finance and asset-backed lending. There are over 500 borrowers across the portfolio which focuses on providing working capital.
Managing Director and Head of Bain Capital Credit's Melbourne office, Mitchell Stack, said:
“This investment is a strong reflection of Bain Capital Credit's deep capabilities in the portfolio acquisition space and demonstrates our role as a trusted partner to financial institutions seeking solutions. This is our third portfolio transaction of this nature in the Asia Pacific region working with Deutsche Bank and would not have been possible without a strong team on the ground in Australia, combined with a significant set of Asia Pacific and global resources supporting them. The SME and middle market focus of GE accords well with our own focus on providing flexible capital to mid-market businesses.”
Deutsche Bank Australia and New Zealand Chief Executive, James McMurdo, said:
“We are pleased to continue working closely with GE as it executes on its strategic agenda and to partner with Bain Capital Credit again on another portfolio transaction. We believe our ability to provide financing solutions as a co-investor, financier and advisor is a critical differentiator of our platform and has enabled us to participate in a series of successful transactions of this nature in the region”.
Since Bain Capital Credit opened its offices in Melbourne in 2013, and in Hong Kong in 2014, it has steadily expanded its regional footprint and continues to build its capabilities. Bain Capital Credit now has an Asia Pacific team of 11 investment professionals supported by a global platform.
The GE transaction is the latest in a series of recent credit investments for Bain Capital Credit in the Asia Pacific region where it has a large local funding platform to provide a range of capital solutions across special situations, portfolio acquisitions, mezzanine lending, growth capital and distressed investing.
In 2015 in Australia, Bain Capital Credit recapitalised mining services company Imdex, and provided mezzanine finance to the private equity-backed acquisitions of VIP Pet Foods, Affinity Education and the acquisition of GE’s Consumer Finance business.
These recent deals followed the $1.3 billion acquisition of J.P. Morgan’s Global Special Opportunities Group in 2014, which included loans and related special situations investments across the Asia Pacific region and around the world, and the >A$300 million purchase in 2013 of a credit portfolio of performing and stressed corporate loans from Lloyds in Australia.
Today, Bain Capital Credit has more than 230 employees in eight offices worldwide and more than $26 billion in assets under management as of July 1, 2015.
The transaction, which is expected to close by the end of 2015, is subject to regulatory approvals. Ashurst and Herbert Smith Freehills served as legal counsel to Bain Capital Credit and Deutsche Bank. Morgan Stanley advised on the sale and King Wood Mallesons and Minter Ellison served as legal counsel to GE.
Bain Capital Credit, formerly known as Sankaty Advisors, is one of the world’s leading private managers of fixed income and credit instruments. Founded in 1998 and now managing more than $26 billion of assets, Bain Capital Credit has an integrated team of more than 230 people that enables the firm to invest up and down the capital structure and to conduct rigorous, independent analysis of thousands of corporate issuers. Bain Capital Credit invests in a wide variety of securities and investments globally, including leveraged loans, high-yield bonds, distressed and stressed debt, mezzanine debt, structured products, real estate and equities. An employee-owned private partnership, the firm has offices in Boston, New York, Chicago, London, Luxembourg, Dublin, Hong Kong and Melbourne. Bain Capital Credit is registered with the Securities and Exchange Commission and Bain Capital Credit, Ltd., is authorised and regulated by the Financial Conduct Authority. For more information, please visit www.baincapitalcredit.com.
Deutsche Bank is a leading global bank. Deutsche Bank provides commercial and investment banking, retail banking, transaction banking and asset and wealth management products and services to corporations, governments, institutional investors, small and medium-sized businesses, and private individuals. Deutsche Bank is Germany's leading bank, with a strong position in Europe and a significant presence in the Americas and Asia Pacific.
This press release has been updated to reflect the new business unit name, "Bain Capital Credit," which was changed from "Sankaty Advisors."