27 February 2020
NEW YORK–(BUSINESS WIRE)–Pretium Partners, LLC (“Pretium”) and Latigo Partners, L.P. (“Latigo”) today announced that Pretium has acquired the investment management business of Latigo. Latigo co-founders David Ford and David Sabath are joining Pretium as Senior Managing Directors, members of the Executive Committee and remain as Portfolio Managers of Latigo’s investment vehicles, effective immediately. Additional investment professionals as well as several key operational members of the Latigo team are also joining Pretium. Terms of the transaction were not disclosed.
Founded in 2005, Latigo is a fund manager that specializes in event-driven investment opportunities. Strategies include distressed securities, special situations and long/short credit and equity investing. The Latigo team will be joining Pretium’s corporate & structured credit business, which currently manages seven CLOs and several investment vehicles for structured credit opportunities.
Pretium is an alternative investment management firm focused on residential real estate, residential credit and corporate & structured credit with more than $14 billion in assets under management. Pretium has made a significant investment in the corporate credit investment management arena through the acquisition of Valcour Capital Management, the hiring of several senior investment professionals, and the multi-year development of Pretium LATTICETM, a proprietary analytical toolkit.
“We are excited to complete this strategic acquisition, which is a natural extension of our existing credit strategies,” commented Donald Mullen, CEO and founder of Pretium. “Building out distressed credit investment capabilities has been a priority, and we are excited to welcome the Latigo team. In keeping with our fundamental tenants of investing during periods of paradigm shifts and market dislocations, we believe there will be a significant opportunity in the corporate credit markets.”
Mr. Ford said, “Pretium has distinguished itself as a thought leader in the asset management space and we are thrilled to partner with them as we enter into this next stage of our evolution. Over the past fifteen years, we have remained focused on generating value for our investors while remaining true to both our culture and our investment process. Pretium shares our philosophy and approach to investing and represents an ideal partner for Latigo and its LPs.”
“Combining our team and process with Pretium’s existing corporate & structured credit capabilities will provide additional avenues for idea generation and investment opportunities,” added Mr. Sabath. “We look forward to working closely with the Pretium team and to leveraging these new resources to execute on our strategy and deliver strong returns for our LPs.”
Sidley Austin LLP and Hunton Andrews Kirth LLP served as legal advisors on the transaction for Pretium. Schulte Roth & Zabel LLP served as legal advisor for Latigo.
Pretium is a specialized alternative investment management firm focused on real estate, residential credit and corporate & structured credit with $14 billion in assets under management. Pretium was founded in 2012 to capitalize on secular investment and lending opportunities arising as a result of structural changes, disruptions, and inefficiencies within the economy, the residential housing sector and mortgage finance markets. Pretium has built an integrated analytical and operational ecosystem within the U.S. residential housing, mortgage and corporate credit markets, and believes that its insight and experience within these markets create a strategic advantage over other investment managers. For more information, please visit www.pretium.com.
ABOUT LATIGO PARTNERS
Founded in 2005, Latigo Partners is a fund manager that specializes in event-driven investing. The Firm’s strategies include distressed securities, special situations and long/short credit and equity investing. The team conducts in-depth fundamental research to identify securities that they believe contain the most attractive risk/reward relationship in highly-levered capital structures. They seek to produce attractive risk-adjusted returns while placing a strong emphasis on capital preservation. Latigo was founded by co-portfolio managers David Ford and David Sabath, each of whom has over 25 years of experience in event-driven investing.
Pretium: Gasthalter & Co., Jonathan Gasthalter / Carissa Felger, 212-257-4170
Latigo: ASC Advisors LLC, Steve Bruce / Taylor Ingraham, 203-992-1230