Wed 09/27/2023 14:29 PM
The former executives behind CBAM Partners have launched a new asset management company, Canal Road Group, in Miami, according to market sources. The new firm is set to invest in both senior secured loans and private credit with a view to issuing collateralized loan obligations, or CLOs, and is offering an ownership interest to its early limited partners.
Canal Road Group was launched by Don Young and Mike Damaso. The pair previously co-founded CBAM back in 2016 along with Jay Garrett, and expanded the firm to $15 billion in assets under management by 2022, when they sold their CLO portfolio to Carlyle Group.
Canal Road Group has a core group of 14 other employees who previously worked for CBAM. Some of the team members spent the year following the Carlyle acquisition working elsewhere in the market for other firms, sources said.
Carlyle bought CBAM’s CLO platform for about $787 million in 2022 using a combination of $615 million in cash and 4.2 million common shares issued. The deal made Carlyle the largest CLO manager in the world by volumes under management at the time.
Representatives for Canal Road Group declined to comment on this story.
--Hugh Minch
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