Basis Capital will act as the collateral manager on two major new collateralised debt obligation (CDO) issues, launching a division which could have $US750 million under management from day one.
The division, to be known as Fort Denison (in honour of the view from Basis’ new Circular Quay offices) will pick the assets underlying CDO issues from investment banks, and manage the assets through the life of each CDO. The founder and chief investment officer of Basis Capital, Steven Howell, said the two appointments with global investment banks so far were “;unique for an Australia-based credit specialist”;, and reflected the skills in the funds manager’s securitisation division. Howell said he could not reveal the sponsors of the two intial CDOs until they had placed the debt with their clients – expected to be a mix of pension funds and fixed interest funds managers, mainly based offshore.
Since taking over the top job at the $44 billion Funds SA more than a year ago, chief executive John Piteo has ushered in an investment function overhaul and wrapped up an important stage of the fund’s five-year data transformation program. It pledges to recentre around investment performance and more efficient processes, as the “missing piece” has been found in incoming CIO Con Michalakis.
Darcy SongJanuary 10, 2025
