FOR IMMEDIATE RELEASE
Ducenta Squared Asset Management Acquires Tortoise Credit Strategies
LOS ANGELES – APRIL 23, 2020 – Ducenta Squared Asset Management (“DSAM”) today announced the signing of a definitive agreement to purchase the assets of Tortoise’s traditional fixed income business, Tortoise Credit Strategies (“TCS”), a leading fixed income asset manager. As of March 31, 2020, TCS had assets under management of approximately $3bn primarily related to Core, Core Plus and High Yield investment strategies. Terms of the private transaction were not disclosed.
The DSAM acquisition of TCS brings decades of experience in fixed income investing, with a disciplined investment approach rooted in fundamental credit analysis and managing risk. Longstanding members of the investment management and research teams from TCS and its predecessor, Bradford & Marzec, will be joining DSAM and will continue in their existing roles. Senior professionals will receive equity stakes, aligning interests with the firm to significantly grow the business going forward.
“We are incredibly excited about the growth opportunities that the acquisition offers us and our clients. We are thrilled about the seasoned team joining us – notably Jeff Brothers, John Heitkemper and Chris Bleszinksi,” said Chairman and CEO of Ducenta Squared Asset Management, M.K. David Kang. “Both teams have significant and complementary experience and more importantly, share common values and goals of being a global asset manager. We believe this is as much of a partnership as an acquisition that will allow us to rapidly grow our business both in US and Asia as we combine our client-‐centric and traditional distribution models to add value to our institutional and private wealth clients.”
“The acquisition will enable us to expand our fixed income strategies and products. The team’s proven expertise in managing fixed income strategies through various market cycles is a testament to their strength and to their prudent investment process and analyses,” said Brian Kim, President of Ducenta Squared Asset Management. “We strongly believe that the people are at the heart of a successful firm and are excited to grow the business together.”
The investment and research teams as well as the investment processes and day-‐to-‐day portfolio management will largely remain the same. Joining David and Brian on the executive team at DSAM are Chad Strean (most recently a senior executive at Barings) and Jeff Brothers, who will be Co-‐Head of Fixed Income and Senior Portfolio Manager. The Investment Policy and Strategy Committee will be comprised of existing TCS members and new members from DSAM.
DSAM will be headquartered in Los Angeles, keeping its long-‐standing heritage in Southern California. Mr. Kang has deep relationships in the local community where he is on the Advisory Board of UC Irvine Paul Merage School of Business, Center for Real Estate where he received his executive MBA and undergraduate degrees.
Winston & Strawn served as legal counsel to DSAM and Oppenheimer & Co. Inc. acted as exclusive financial adviser to Tortoise.