Spouting Rock Asset Management Acquires Majority Stake in Old Hill Partners
Posted on 01/07/2022
Spouting Rock Asset Management, LLC, (Spouting Rock) a multi-boutique manager platform providing investment solutions and services, announced an agreement to merge with Old Hill Partners Inc. (Old Hill), an alternative asset manager focused on asset-based lending transactions with small- and medium-sized businesses. A newly formed subsidiary of Spouting Rock, Spouting Rock Alternative Credit, LLC (SR Alternative Credit), will house the Old Hill asset-based lending business and serve as the investment advisor to Old Hill’s existing funds and other investment vehicles. The new subsidiary will be operated by former Old Hill employees, Jeff Haas and Peter Faigl as president and chief investment officer, respectively. This acquisition will allow Spouting Rock to expand its platform of solutions and help complement clients’ existing portfolio needs.
Old Hill oversees the origination, underwriting, structuring and oversight of a portfolio of asset-based loans secured by a variety of consumer and commercial assets including art loans, auto loans, credit card receivables, equipment leases, media tax credits, merchant cash advances, movie copyrights and distribution rights, pet leases, small business loans, trademarks, and unsecured consumer loans.
SR Alternative Credit will seek to identify opportunities for risk-adjusted returns in private debt well in excess of those available to traditional credit investors. Currently, Old Hill’s asset-based lending transactions target borrowers seeking US$10 to US$ 50 million in financing and typically carry floating rate coupons and interest rate floors to protect against rising rates, while strong collateral coverage and proper deal structure address a wide variety of other transaction-specific risks.
Founded by John C. Howe in 1996, Darien-based Old Hill Partners is an SEC-registered investment advisor with significant experience in asset-based lending and alternative asset management. Before creating Old Hill Partners, Howe was a Managing Director for Nomura Securities working in the government business unit.