3i Group - 3i establishes US debt management business

  • 02 Aug 2012
 

Slaughter and May, advised 3i Group plc ('3i'), on a strategic transaction with WCAS Fraser Sullivan Investment Management, LLC ("Fraser Sullivan"), a leading specialist US debt manager, to establish 3i's US debt management platform.

The new debt management platform, that was announced on 2 August 2012, provides access to the large and liquid US credit markets and builds upon 3i's existing European debt management business. On a pro forma basis, total assets under management of 3i's debt management business are approximately US$10.2 billion (£6.5 billion).

Following completion of the transaction, all new US debt management business for both 3i and Fraser Sullivan will be implemented through 3i Debt Management US ('3iDM US'), which will have available to it the resources of the Fraser Sullivan management team and its investment professionals.

Fraser Sullivan is a leading specialist US debt management company, headquartered in New York, with approximately US$2.5 billion (£1.6 billion) of assets under management.

3i (through its wholly owned subsidiary, 3i Corporation) will initially hold an 80% equity interest in the newly established 3iDM US. The balance of the equity in 3iDM US will be held, directly or indirectly, by John Fraser, Tighe Sullivan and three other partners and will be the subject of put and call arrangements pursuant to which it is expected that 3i will own 100% of the equity in 3iDM US after three years.

Slaughter and May advised on UK legal aspects.

 
 

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Corporate and Commercial: Martin Hatrell

 
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