Management Corp said Monday that it has agreed to buy the mid-market loan portfolio of
Analy Capital Management
for about 2.4 billion dollars.
Annaly (ticker: NLY), a mortgage real estate investment trust, said it is selling most of the middle-market credit assets it has on its balance sheet, as well as assets it manages for third parties. Annaly expects the transaction, which will close in the second quarter, to increase book value.
Last year, Annaly sold her commercial real estate business to investment firm Slate Asset Management for $2.33 billion as she sought to focus on her core business of residential mortgage financing.
Annaly’s shares have fallen 19% since January, with the shares closing Monday at $6.53. Several analysts have a “hold” on the stock, with an average price target of $7.25, according to FactSet.
Ares (ARES), an alternative investment manager, said there is substantial overlap with private equity firms backing Annaly’s portfolio, as well as opportunities to strengthen ties with private equity firms new to Ares. “This acquisition provides significant incumbency and deal sourcing advantages and relationship benefits, which we believe will lead to improved returns for our investors,” Mitchell Goldstein and Michael Smith, partners and co-heads of the Ares credit group, said in a statement.
Ares shares have recovered from a March low of $66.37, closing Monday at $76.54. Ares currently has $314 billion in assets under management, up from $25 billion in 2008. Several analysts rate the stock “buy” with an average price target of $97.
Write to Luisa Beltran at firstname.lastname@example.org