CIFC, a U.S. private debt investment manager, and F.A.B. Partners, an alternative investment platform, entered into a definitive merger agreement. F.A.B. will acquire CIFC for approximately $333 million in cash.
Under the terms of the merger agreement, CIFC shareholders will be entitled to receive $11.46 in cash per share – $11.36 per share as consideration in the merger, plus a 10 cent per share distribution.
New York-based CIFC is a $14 billion private debt manager specializing in U.S. corporate loan strategies. CIFC has more than 75 employees, including more than 30 dedicated investment professionals. The firm serves more than 200 institutional investors globally and is one of the largest managers of collateralized loan obligations (CLOs) in North America.
F.A.B. is a global alternative investment platform that focuses on originating, structuring and actively managing investments across geographies and asset classes. F.A.B. was founded by Michele Faissola, Dalinc Ariburnu and Nizar Al-Bassam, each of whom has significant capital markets and investment management experience.
Jeffrey S. Serota, chairman of CIFC’s board, stated: “We are pleased to have reached this agreement with F.A.B., which follows a thorough review of strategic and financial alternatives that generated interest from over a dozen suitors. Our board concluded that this offer maximizes value for our shareholders and is in the best interests of our investors and clients.”
Stephen Vaccaro, co-president and CIO of CIFC, said, “We have spent the past 10 years building a robust and scalable U.S. private debt business. With the support of F.A.B., our company embarks on a new chapter of growth and product line expansion. We are thrilled to be able to tap into the extensive experience F.A.B. can contribute to our platform and regard
J.P. Morgan Securities serves as exclusive financial advisor to CIFC, and Dechert and Latham & Watkins serves as legal counsel. Moelis & Company is acting as exclusive financial advisor to F.A.B., and Weil, Gotshal & Manges and Ernst & Young are serving as legal advisor and accounting and tax advisor, respectively.