CLO supply forecast post-Fed meeting; NewStar to acquire CLO manager Feingold O’Keefe

By Cristal Cody

Tupelo, Miss., Sept. 17 – New CLO supply is expected now that a Federal Reserve rate decision is off the table until the next monetary policy meeting, according to a market source on Thursday.

In other activity, NewStar Financial Inc. announced it plans to acquire Boston-based CLO manager Feingold O’Keefe Capital, LLC. The deal will add $2.3 billion to NewStar’s assets under management, according to a news release after the markets closed on Wednesday.

The deal is expected to close in the fourth quarter.

Feingold O’Keefe, established in 2001, is an alternative asset management firm that manages six CLOs backed by broadly syndicated loans.

Feingold O’Keefe was last in the primary market in 2014 when it priced three CLO deals.

NewStar Financial was mostly recently in the primary market on Sept. 3 with the $397.81 million NewStar Commercial Loan Funding 2015-2 LLC transaction. NewStar Financial has priced two CLO offerings year to date.

NewStar Financial, a Boston-based middle-market commercial lender, brought three CLO transactions in 2014.

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