Redding Ridge Asset Management Acquires Irradiant Partners: A Strategic Move in CLO Management

Redding Ridge Asset Management (RRAM), an independently managed affiliate of Apollo Global Management, has announced its acquisition of Irradiant Partners, a leading alternative investment manager specializing in liquid credit, private credit, and renewables. This strategic move will significantly enhance RRAM's position in the CLO (Collateralized Loan Obligation) market and expand its investment capabilities. The acquisition is expected to close in the second quarter of 2025, subject to regulatory approvals.

The acquisition will add $10.7 billion of CLO assets under management (AUM) to RRAM, bringing its total AUM to approximately $38 billion. This scale will make RRAM one of the top five CLO managers globally. Additionally, Apollo will add $2.2 billion of private credit and renewables AUM from Irradiant, further diversifying RRAM's investment portfolio.

Following the acquisition, John Eanes, Co-CEO and head of liquid investments at Irradiant, will be named incoming CIO of RRAM US. Michael Levitt, the current chairman of Irradiant, and Jon Levinson, co-CEO and head of private investments at Irradiant, will also join Apollo. This integration of Irradiant's leadership team will strengthen RRAM's franchise and solidify Redding as one of the most recognized and trusted issuers in the CLO market.

The acquisition aligns with RRAM's disciplined investment philosophy and strategic growth objectives. Bret Leas, RRAM Board Member and Apollo Partner, commented, "This acquisition of Irradiant creates one of the best capitalized global CLO managers with over $38 billion of AUM. The addition of their leadership team, including John Eanes as RRAM US CIO, will strengthen our franchise and solidify Redding as one of the most recognized and trusted issuers."

The acquisition of Irradiant Partners by Redding Ridge Asset Management brings several strategic advantages, including:

1. Scale and Diversification: The acquisition adds significant AUM, providing operating leverage and enhancing RRAM's ability to manage portfolios and generate returns. The addition of private credit and renewables AUM also diversifies RRAM's investment portfolio.
2. Talent and Expertise: The integration of Irradiant's leadership team brings a wealth of experience and expertise in liquid credit, private credit, and renewables. This addition will strengthen RRAM's investment capabilities and drive performance.
3. Investment Philosophy Alignment: Both RRAM and Irradiant share a disciplined investment philosophy, focusing on consistent portfolio management, strategic execution, and structuring. This alignment ensures a seamless integration of Irradiant's portfolios into RRAM's management strategy.
4. Access to New Markets and Investors: The acquisition provides RRAM with access to Irradiant's existing investor base, which includes public and corporate pensions, endowments, foundations, and insurance companies. This expanded investor base will allow RRAM to serve a broader range of clients and potentially attract new capital.

In conclusion, the acquisition of Irradiant Partners by Redding Ridge Asset Management is a strategic move that will significantly enhance RRAM's position in the CLO market and expand its investment capabilities. The integration of Irradiant's leadership team and the alignment of investment philosophies position RRAM for continued growth and success in the alternative investment management industry.