AllianzGI to Acquire Sound Harbor Partners

  • Agreement reinforces AllianzGI’s capability in Alternatives and will accelerate the global build-out of its Private Debt Platform

NEW YORK--()--Allianz Global Investors (AllianzGI), one of the world’s leading active investment managers, announced today that Sound Harbor Partners, a US private credit manager led by Michael Zupon and Dean Criares, have agreed to join its fast-growing Private Debt Platform. Under the terms of the transaction, AllianzGI will acquire Sound Harbor’s assets for an undisclosed sum and the Sound Harbor team will join AllianzGI.

As a result of the acquisition, AllianzGI’s clients will be able to access US private credit investment funds managed by a highly respected team with a robust investment approach and track record of outperformance. The Sound Harbor team will become part of the AllianzGI global investment platform, maintaining the integrity of its investment strategy, process and team while accessing deep insights and knowledge-sharing among colleagues across the platform.

Andreas Utermann, CEO and Global CIO of AllianzGI, said:

“Over the last five years, AllianzGI has invested steadily in the quality and breadth of its active investment offering. Within our fast-growing Alternatives segment, private debt stands out as a particularly exciting area, where we’ve clearly signalled our intent to expand our capabilities to address our clients’ evolving investment needs. The addition of the team from Sound Harbor is a significant step in that process, strengthening and complementing our existing capabilities in this important space.”

Deborah Zurkow, Head of Alternatives at AllianzGI, added:

"We are very excited the Sound Harbor team are joining our expanding private debt platform. We continue to see strong demand from our clients for access to a diverse range of illiquid alternatives solutions. Sound Harbor's expertise enhances AllianzGI’s existing global Alternatives capability, which includes infrastructure debt and a fast-growing corporate loans capability in Paris, underlining our desire to establish ourselves as one of the most prominent private debt managers globally.”

Commenting on behalf of Sound Harbor, Michael Zupon said:

“Dean and I, along with the entire team, are looking forward to joining a leading and respected investment manager that shares Sound Harbor’s commitment to outstanding investment performance and dedication to its clients’ needs. Joining AllianzGI will enhance our ability to capitalize on trends favoring growth in alternative investment managers with scale, brand recognition and long-term capital.”

Sound Harbor is a New York-based private credit manager focused on alternative investments in corporate loans, direct lending, distressed debt and opportunistic credit. The firm manages these investments on behalf of its clients in private limited partnerships, collateralized loan obligations and separately managed accounts. Mr. Zupon is a former Partner at The Carlyle Group where he founded and led the leveraged finance business. Mr. Criares is a former Partner of The Blackstone Group where he founded and led the loan management business. The transaction is expected to close in the first quarter of 2017.

Alternatives is one of the four pillars of AllianzGI’s global investment platform, alongside Equities, Fixed Income and Multi-Asset. Since the creation of AllianzGI’s Alternatives pillar, which comprises a diverse mix of both liquid and illiquid alternative investment solutions for clients, Assets Under Management have more than doubled, growing from USD 9.2 billion in December 2014 to over USD 22.0 billion by the end of Q3 2016.

About Allianz Global Investors

Allianz Global Investors is a diversified active investment manager with a strong parent company and a culture of risk management. With 25 offices worldwide, we provide global investment and research capabilities with consultative local delivery. We have more than EUR 481 billion in AUM for individuals, families and institutions worldwide and employ over 500 investment professionals.

At Allianz Global Investors, we follow a two-word philosophy: Understand. Act. It describes how we look at the world and how we behave. We aim to stand out as the investment partner our clients trust by listening closely to understand their challenges, then acting decisively to provide them with solutions that meet their needs.

Data as at 30 September 2016

About Sound Harbor Partners

Sound Harbor is an alternative investment firm that provides private credit to US companies. Sound Harbor manages assets in the SHP Capital Solutions Funds, the SHP Loan Funds and separately managed accounts. Sound Harbor invests in secured loans, senior debt, subordinated debt and equity securities. For more information, visit www.soundharbor.com.

Advisors to the transaction

Berkshire Capital Securities LLC served as M&A advisor, Kaye Scholer LLP served as legal advisor to Sound Harbor and Sullivan & Cromwell served as legal advisor to AllianzGI.

Disclaimer:

Investing involves risk. The value of an investment and the income from it will fluctuate and investors may not get back the principal invested. Past performance is not indicative of future performance. This is a marketing communication. It is for informational purposes only. This material does not constitute investment advice or a recommendation to buy, sell or hold any security and shall not be deemed an offer to sell or a solicitation of an offer to buy any security. The views and opinions expressed herein, which are subject to change without notice, are those of the issuer or its affiliated companies at the time of publication. Certain data used are derived from various sources believed to be reliable, but the accuracy or completeness of the data is not guaranteed and no liability is assumed for any direct or consequential losses arising from their use. The duplication, publication, extraction or transmission of the contents, irrespective of the form, is not permitted. This material has not been reviewed by any regulatory authorities. In mainland China, it is used only as supporting material to the offshore investment products offered by commercial banks under the Qualified Domestic Institutional Investors scheme pursuant to applicable rules and regulations. This material is being distributed by the following Allianz Global Investors companies: Allianz Global Investors U.S. LLC, an investment adviser registered with the U.S. Securities and Exchange Commission (SEC); Allianz Global Investors GmbH, an investment company in Germany, authorized by the German Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin); Allianz Global Investors Asia Pacific Ltd., licensed by the Hong Kong Securities and Futures Commission; Allianz Global Investors Singapore Ltd., regulated by the Monetary Authority of Singapore [Company Registration No. 199907169Z]; Allianz Global Investors Japan Co., Ltd., registered in Japan as a Financial Instruments Business Operator [Registered No. The Director of Kanto Local Finance Bureau (Financial Instruments Business Operator), No. 424, Member of Japan Investment Advisers Association] ; Allianz Global Investors Korea Ltd., licensed by the Korea Financial Services Commission; and Allianz Global Investors Taiwan Ltd., licensed by Financial Supervisory Commission in Taiwan.

Contacts

For further information:
AllianzGI
John Wallace, +44 (0)20 3246 7588
John.Wallace@allianzgi.com
or
Alastair Fairbrother, +44 (0)20 3246 7432
Alastair.Fairbrother@allianzgi.com
or
Megan Frank, +1 212-739-3501
Megan.Frank@allianzgi.com

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