Angel Oak Capital to take over Rainier High Yield, adds fund managers

By Susanna Moon

Chicago, April 18 – Angel Oak Capital Advisors, LLC announced plans to acquire the Rainier High Yield fund as part of the Angel Oak Trust, a move that will add about $40 million of assets.

Shareholders approved the reorganization of the fund and its investment team into the Angel Oak High Yield Opportunities Fund, according to a company announcement.

The Angel Oak High Yield Opportunities fund seeks to provide investors with current income and capital appreciation.

The fund aims to maximize long-term risk-adjusted returns through capital preservation, diversification and liquidity by investing principally in high yield corporate bonds concentrated on BB and B rated issuers.

Over time, the fund could benefit from additional capabilities in hedging credit risk as well as the analytical and fixed-income trading skills already present at Angel Oak, the release said.

Angel Oak has hired Matthew Kennedy and James Hentges, who have led Rainier Investment Management’s high-yield mutual fund since its inception in 2009. Kennedy and Hentges will join the Angel Oak as senior portfolio managers and will continue to manage the fund from Seattle.

Kennedy previously worked with Angel Oak Capital’s co-chief executive officer and chief investment officer Sreeni Prabhu and other members of the investment team at Washington Mutual earlier in their careers.

“As we branch out into more traditional fixed income investing from the alternative structured credit universe, we are expanding the way we serve clients through adjacent product development,” David Silvera, director of corporate development, said in the press release.

Manning & Napier will acquire a majority stake in Rainier Investment Management, with the deal expected to close in the second quarter.

Angel Oak Capital has nearly $5.5 billion of assets under management.

Angel Oak is an investment management firm based in Atlanta.

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