Deerfield Capital acquires CDO management contract

By Susanna Moon

Chicago, July 21 - Deerfield Capital Corp. said it acquired the management contract for Robeco CDO II Ltd., a collateralized debt obligation previously managed by Robeco Investment Management, Inc.

The CDO is collateralized primarily by high-yield corporate bonds.

As of June 17, the principal balance was about $201 million and the maturity is Aug. 20, 2013.

"This is the first transaction in our previously announced strategy to acquire CDO management contracts," Jonathan Trutter, chief executive officer, said in a press release.

"We were able to acquire the majority of the ongoing management fee stream from the CDO without the payment of any purchase price to the prior manager," Trutter said. "We see significant revenue and earnings growth potential in the CDO management contract roll-up strategy and believe Deerfield is well-positioned to execute additional transactions going forward."

Deerfield now manages 31 CDOs and structured products and has total assets under management exceeding $13 billion.

Deerfield Capital is a Rosemont, Ill.-based real estate investment trust with a portfolio composed primarily of fixed-income investments.

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