Apollo’s Redding Ridge to Buy Irradiant Partners, Adding $11B in CLO AUM
Apollo affiliate Redding Ridge Asset Management (RRAM) has struck a deal to acquire Irradiant Partners, an alternative asset manager specializing in liquid credit, private credit, and renewables. The move will bring nearly $10.7 billion in collateralized loan obligation (CLO) assets to RRAM’s portfolio, placing it among the top five CLO managers with around $38 billion in assets. Additionally, Apollo will gain $2.2 billion in private credit and renewables assets from Irradiant.
The first close of the majority of the business, including liquid and private credit, is anticipated in the second quarter. Redding Ridge Asset Management (RRAM) will fund the acquisition using cash from its balance sheet. Financial terms of the deal were not disclosed. Both RRAM and Apollo plan to retain most of Irradiant’s employees following the acquisition.
Irradiant was founded in 2021 by Michael Levitt, John Eanes, and Jon Levinson. After the acquisition, Eanes will be appointed CIO of RRAM U.S., while Levitt and Levinson will join Apollo.
The move will make a difference “in a market where scale and operating leverage are critical to portfolio management as well as the business model,” said Bret Leas, RRAM board member and Apollo partner and co-head of ABF.
Founded in 2016 as an independently managed affiliate of Apollo, Redding Ridge has quickly grown to become one of the largest collateral managers for CLO transactions and related warehouse facilities in both the U.S. and Europe. Currently, Redding Ridge manages over $27 billion in assets, while Apollo reported total assets of $750 billion as of the end of January.
The Irradiant deal follows Apollo’s announcement in January of the proposed acquisition of Argo Infrastructure Partners, which would bring around $6 billion in assets to Apollo’s infrastructure portfolio.
Sidley Austin is serving as legal counsel and Greensledge Capital Markets as financial advisor to RRAM and Apollo. Weil, Gotshal & Manges is serving as legal counsel and Piper Sandler as financial advisor to Irradiant Partners.