First Eagle Investments entered into a definitive agreement to acquire Napier Park Global Capital, an alternative credit manager with approximately $18.7 billion in assets under management as of Dec. 31, 2021, predominantly for institutions through credit funds, U.S. and European collateralized loan obligations and real assets. As an autonomous, wholly owned unit of First Eagle Investments, Napier Park will go to market as “Napier Park, a First Eagle Investments Company” and maintain its investment approach, business focus and client service.
First Eagle Investments is an independent, privately owned investment firm with approximately $110.5 billion in assets under management as of Dec. 31, 2021. The acquisition of Napier Park significantly broadens First Eagle’s capabilities in the large and diverse alternative credit market, enabling it to offer clients exposure to opportunistic U.S. and European credit, U.S. mortgages and consumer debt, U.S. municipal debt and equipment leasing. It also enhances the size and scope of the firm’s CLO footprint, including the addition of European CLO management.
“First Eagle over time has deliberately sought to nurture an investment-led culture, supported by a set of core investment tenets, that encourages philosophical autonomy among our portfolio management teams,” Mehdi Mahmud, president and CEO of First Eagle Investments, said. “We believe Napier Park’s capabilities are a strong complement to those of our existing global value, small cap and First Eagle alternative credit teams, and our clients will be better served by having access to all through a single platform. The transaction has no impact on First Eagle Alternative Credit, which will continue under its current leadership and operate independently from Napier Park.”
An employee-owned partnership with offices in New York, London and Switzerland, Napier Park differentiates itself through world-class infrastructure, creativity and decades of specialized expertise among its 47 investment professionals, which has enabled it to produce a strong performance record across its strategies. Jim O’Brien and Jon Dorfman — who serve as CEO and chief investment officer, respectively — will continue to run Napier Park as managing principals, reporting to Mahmud. No changes will be made to Napier Park’s investment philosophy or processes as a result of the acquisition, nor are any personnel changes expected. Key Napier Park employees will sign long-term agreements and continue in their current roles.
“We are excited to leverage First Eagle Investments’ established global institutional distribution structure to amplify the momentum we’ve built in our business over the years,” O’Brien said. “We look forward to introducing our differentiated lineup of alternative credit vehicles to a wider base of investors seeking incremental returns from credit and liquidity risk premia.”
“First Eagle’s investment-centric culture and commitment to client outcomes are a good fit with the environment we’ve sought to nurture at Napier Park,” Dorfman said. “Furthermore, the firm’s belief in maintaining Napier Park’s investment and operating autonomy was extremely attractive and enabled us to reach this acquisition agreement.”
The transaction has been approved by First Eagle’s board of directors and Napier Park’s partners, and is expected to close in the coming months, subject to regulatory approvals and other customary closing conditions.
Goodwin Procter acted as legal counsel and UBS Investment Bank acted as financial advisor to First Eagle. Davis Polk acted as legal counsel and Houlihan Lokey acted as financial advisor to Napier Park.
