New York, NY, United States (4E) – Sankaty Advisors, a unit of Bain Capital LLC, has agreed to pay over $1bn for the debt portfolio of JPMorgan’s Global Special Opportunities Group.
The decision was announced by the companies in an e-mailed statement released Monday. The deal is expected to close by the end of the year, and will not have a material impact on New York-based JPMorgan’s earnings, the statement said.
Sankaty prevailed in an auction for JPMorgan’s principal investment group portfolio, which includes junior loans in Europe and North America as well as securities in Australia and Asia. The transaction is expected to be announced on Monday.
The unit is based in Hong Kong and has 35 employees who are mostly in Asia. It is managed by Chris Nicholas for JPMorgan and has invested in private equity, non-performing loans and distressed debt.
Sankaty, which has been buying from European financial institutions such as Lloyds Banking Group and the Irish Bank Resolution Corp, also sees opportunity at distressed corporate debt in Australia and Asia, due to increasing leverage there.