--Corrie Driebusch
Credit investment firm WCAS Fraser Sullivan Investment Management is preparing to make a full-fledged leap into running separately-managed accounts. The $1.8 billion firm, which is partially owned by $20 billion private equity firm Welsh, Carson, Anderson & Stowe, invests in below-investment-grade loans and bonds through four collateralized loan obligations and three credit funds. Co-Founder Tighe Sullivan said the time is right to go after institutional investors via separately managed accounts because of their rising popularity as well as how many opportunities there are in the market right now for investing in loan, high-yield and distressed debt markets.
The firm brought on Tim West, former senior managing director at MacKay Shields which manages about $20 billion in the high-yield space, as of June 1 for the newly-created role of director of marketing. The hope is that his ties to big pension plans and other institutional investors will help drive more traffic for its new managed accounts push.
Sullivan said he has heard some interest from current clients for managed accounts, but is really counting on new investors, mostly brought on by West, when it comes to raising capital. He declined to specify a target capacity.
This article was originally published in Alternative Investment News.