Asset manager New York Life Investments has agreed to purchase a majority stake in boutique investment firm Credit Value Partners (CVP) for an undisclosed amount.
CVP is a provider of high yielding and opportunistic corporate debt investments. Currently, it has more than $2bn of regulatory assets under management.
The transaction will enable New York Life to offer various alternative investment solutions, such as private equity, mezzanine, equity co-investing, middle market lending, real estate, hedged strategies and real assets.
Subject to customary closing conditions, the deal is expected to close in the first quarter of 2017. Terms of the deal were not disclosed.
New York Life Investment Management CEO Yie-Hsin Hung said: "CVP is a valuable opportunity to expand our alternatives offerings. The capabilities of CVP's veteran team align with the income generation needs and total return profile of our investor base.
"With a range of products and capabilities presenting attractive credit opportunities across market cycles, CVP is well positioned to apply its credit expertise to delivering strong risk-adjusted returns for clients."
Credit Value Partners managing partner and portfolio manager Donald Pollard said: "This partnership presents a tremendous opportunity for CVP to deepen and expand our credit investment platform and maintain our business culture.
"New York Life Investments is a highly regarded partner with significant resources that will enhance CVP's access to capital and investment opportunities and enable our firm to realize its full potential."