Carmel-based CNO Financial Group Inc. on Monday said it has purchased a non-controlling minority interest in Tennenbaum Capital Partners LLC, a Los Angeles-based investment management firm with more than $6 billion in committed capital under management.
CNO, an insurance holding company, did not disclose how much it spent on the stake, but said TCP will continue to operate on a stand-alone basis under its present executive leadership.
The deal also calls for CNO to make general account investments of about $250 million over an undisclosed period of time across TCP's managed funds.
CNO also agreed invest $30 million in TCP's publicly traded business development company, TCP Capital Corp.
"TCP is a compelling investment opportunity for CNO on multiple levels," said CNO Financial CEO Ed Bonach in a written statement. "They have a long and successful track record in credit-related strategies, which are highly suitable for our long duration lines of business. This relationship provides an opportunity to enhance our investment returns, benefit from access to leading-edge proprietary knowledge, and further diversify our general account investments."
CNO shares slipped 8 cents Monday, closing at $18.45 each. TCP Capital shares dropped 4 cents, to $14.71 each.
"CNO is a terrific institutional partner for TCP," said Howard Levkowitz, co-founder and managing partner of TCP. "CNO provides us with investment commitments across our strategies, enhancing our ability to provide capital solutions to borrowers and portfolio companies, supplementing the capital provided by our longstanding institutional investors, as well as growth capital for new initiatives."