Aegon strengthens alternatives business with North Westerly CLO acquisition
Aegon Asset Management is set to acquire NIBC Bank’s North Westerly European Collateralised Loan Obligation (CLO) management business, as part of its strategy to enhance its alternative investment offerings.
Aegon Asset Management is set to acquire NIBC Bank’s North Westerly European Collateralised Loan Obligation (CLO) management business, as part of its strategy to enhance its alternative investment offerings.The global asset manager, with $311 billion in assets, will purchase NIBC’s UK-based team and CLO platform, which currently oversees three CLOs with a total of €1.2 billion in assets under management.
The North Westerly team, known for being one of Europe’s longest-serving CLO managers, will operate from Aegon Asset Management’s London office. The deal is expected to be finalized in June and will enable Aegon to expand its CLO operations into Europe. The company already possesses a successful US CLO franchise consisting of 12 CLOs and $5.4 billion in assets under management.
Aegon Asset Management’s CEO, Bas NieuweWeme, expressed enthusiasm for the acquisition, stating that it provides an opportunity to accelerate the growth of their alternative fixed income business by venturing into the European CLO market. NieuweWeme highlighted the extensive experience, impressive track record, and strong ESG-focused CLO platform of the North Westerly team, emphasizing its alignment with Aegon’s commitment to responsible investments.
Paulus de Wilt, CEO of NIBC, expressed satisfaction with the partnership, emphasizing Aegon Asset Management’s ability to ensure a seamless transition and uninterrupted service for all stakeholders and staff involved in the North Westerly platform. De Wilt acknowledged the CLO team’s dedication and pioneering efforts in incorporating ESG principles into award-winning CLOs, recognizing their expertise and almost two-decade-long track record.
The acquisition of the North Westerly CLO business complements Aegon Asset Management’s existing alternative investment capabilities, which include Dutch mortgages, private placements, direct lending, structured finance, and real assets. The company has been consolidating its regional investment businesses into a single global organization since 2019, with the integration process finalized in 2020 following the retirement of established brands like Kames Capital and TKP Investments.