Temasek unit, Nexus ink deal to acquire stakes in Post Advisory

[LOS ANGELES] Post Advisory Group has reached a deal with Nexus Capital Management and a Temasek Holdings subsidiary that will reshape the ownership structure of the credit manager but keep day-to-day operations unchanged.

Nexus and Temasek Holdings subsidiary Aranda Principal Strategies are taking the minority ownership positions, alongside Post’s senior management team, according to an e-mailed statement.

As part of the deal, Post’s co-owners, Principal Asset Management and Nippon Life Insurance, will exit their positions. Principal bought into Post in 2003 and held a majority stake.

However, Los Angeles-based Post will remain an investment manager for Nippon Life and Principal across several strategies.

The firm’s senior management team will roll over existing equity and commit additional capital, resulting in a greater share of employee ownership. Post, which manages more than US$14 billion of assets, said that the move is designed to align the interests of staff and clients more closely.

Nexus and Temasek are expected to provide significant capital to fuel growth initiatives and expand Post’s platform, including its collateralised loan obligation (CLO) business. The deal, which is expected to close this year, will also back development of new products and help Post reinvest earnings into strategies that underpin its funds.

Post launched a formal, structured credit platform in 2021 and primarily invests in CLO debt tranches in both the primary and secondary markets, according to its website. BLOOMBERG