Antares Capital is expanding into the broadly syndicated loan market, saying it plans to build an investment team of seven to start.
The firm has hired Seth Katzenstein to lead the business, naming him head of broadly syndicated loans and a managing director. Katzenstein will be based in New York and reports to Vivek Mathew, the firm's head of asset management.
“The plan is to establish a dedicated team of seven experienced investment professionals, supported by shared infrastructure resources across the firm and scale the business over time,” said Katzenstein, who will also join Antares' BSL investment committee.
Katzenstein joins Antares from Intermediate Capital Group plc (ICG). At ICG, Katzenstein built a US liquid credit platform and was head of US loans and high yield. He managed more than $6 billion across 20 funds. Prior to ICG, he worked at Black Diamond Capital Management LLC, GSC Group and Salomon Smith Barney.
“This is an advantageous time for Antares to expand into the BSL market. We don't own legacy BSL assets and have an opportunity to construct clean portfolios for our investors,” said Katzenstein in an emailed statement today.
The move was a logical extension of the firm’s core direct lending business, he said.
“The strength of our existing middle market origination and middle market CLO platforms provides vital experience and relationships, which supports a natural extension into broadly syndicated loans," Katzenstein said. "Expanding into the broadly syndicated loan market will allow Antares to broaden its brand recognition and investor base and increase assets under management.”
Asked about the timing of the move, Katzenstein said: “We don't time the market. Our skillset is investing in good-quality companies with intrinsic value that can repay their loans even in times of stress.”
Recently, several traditional syndicated loan arrangers have expanded their platforms to include private credit.
The company’s business plan is anchored in issuing broadly syndicated loan CLOs, with Antares retaining a majority of the equity capital for the initial CLOs. Over time, Antares Capital plans to diversify the BSL platform into co-mingled funds and separately managed accounts.
Antares is recruiting for the team both internally and externally, which “will enable us to scale the business quickly while helping to ensure that the new platform is aligned with the firm's vibrant and inclusive culture,” said Katzenstein.
The announcement comes on the heels of other changes at the firm. Earlier this month, Antares appointed Mike Hynes and Doug Cannaliato as co-heads of originations, effective Jan. 1, 2023. The two report to Tim Lyne, who is CEO of Antares Capital.