Minneapolis, Minnesota-based private equity firm Norwest Equity partners has made a $75 million (€48 million) all-equity investment in CLO manager Pangaea Asset Management.
The investment, made in fall 2007 and disclosed this week, also included Pangaea management participation.
Since the investment, Pangaea acquired CapitalSource Advisors, the former investment manager of CS Advisors CLO, which was renamed Sargas Asset Management. Pangaea also signed an agreement to sub-advise Merrill Lynch CLO’s collateral manager, 250 Capital.
Pangaea, based in Chicago, now manages three CLO transactions with over $1 billion in assets under management.
Norwest will “help [Pangaea] broaden their product offering into other areas within the loan investment market”, said Norwest principal Todd Solow in a statement. “There is also tremendous opportunity for the company to complement its existing platform by identifying and acquiring other niche asset management firms; growth by acquisition for them will be a very viable option.”
Norwest is currently investing out of its eighth fund, which closed on $800 million in September 2004. The previous fund closed on $800 million in 1999. The middle market firm currently has $3 billion under management.