Guggenheim CEO-Backed Nonprofit to Invest in Chicago CLO Manager
- Academy Group will invest in CLOs for money manager CFIP
- Nonprofit commits $160 million for 8 new CLOs over two years
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A credit investment manager operating in a corner of Wall Street’s securitization machine has found an unconventional partner in its effort to adapt to post-crisis rules requiring it to keep skin in the game: a charity.
Collateralized loan obligation manager Chicago Fundamental Investment Partners, CFIP, has partnered with The Academy Group, an education-focused nonprofit backed by Mark Walter, the co-founder and chief executive officer of Guggenheim Partners, to fund its CLO risk retention investments. The arrangement is mutually beneficial: CLO equity is just the first of many areas of investment that the non-profit intends to pursue in order to generate revenue to fund itself, according to Academy executives.