First Eagle Investment Management to Purchase THL Credit

The deal will see a shuffling of leadership at the newly combined credit platform

First Eagle Investment Management with acquire THL Credit, an alternative credit manager with approximately $17 billion in assets under management. The deal will likely close in the first quarter, according to a joint press release.

First Eagle is an independent, privately-owned investment firm with approximately $99 billion in assets under management. Upon completion of the acquisition, First Eagle’s alternative credit platform will represent approximately $23 billion in assets under management and advisement.

Chris Flynn, THL Credit’s CIO, will become President of the combined alternative credit platform. He will report to Mehdi Mahmud, First Eagle’s President and CEO. THL Credit’s CIO Jim Fellows will become the CIO of the combined credit platform.

“We see a persistent need in the market for meaningful and sustainable sources of income. Alternative credit strategies that invest in tradable credit and directly originated middle-market loans help address this need, offering investors the potential for material income streams and compelling risk-adjusted total returns across business cycles and interest rate environments,” said Mahmud.

First Eagle Investment and THL Credit

Established in 2007 as the credit affiliate of Thomas H. Lee Partners, THL Credit is headquartered in Boston. THL Credit specializes in the management of tradable credit and direct lending to middle-market companies. THL’s credit team has 93 employees. First Eagle’s credit team has 57 employees.

“Uniting the capabilities of THL Credit and First Eagle on a single platform will create a credit business with the scale and experience to further accelerate our leading position in today’s market,” said Flynn. “The team at THL Credit is excited by the growth opportunities we can seize by joining First Eagle. We look forward to working together to continue to provide clients with a best-in-class product suite in alternative credit.”

Related: Brookfield Asset Management Buys 61.2% of Oaktree Capital Management

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