Alternative asset management firm Obra Capital has completed the acquisition of the assets of US-based KDP Investment Advisors and its affiliated companies.

The financial terms of the deal were not revealed.

Established in 1996, KDP Investment Advisors is an asset management and investment research firm that specialises in high-yield bonds as well as leveraged loans with a focus on rigorous and bottom-up credit analysis. 

The firm filed for bankruptcy court protection under Subchapter 5 of Chapter 11 of the US Bankruptcy Code in May 2023.

Obra Capital offered debtor-in-possession financing to the company and subsequently negotiated an asset purchase agreement.

It has also acquired KDP Investment Advisors’ intellectual property and certain client and sub-advisory contracts.

KDP Investment Advisors president and CEO Kingman Penniman said: “Obra’s specialised private markets transactions capabilities and structured product expertise are a natural fit with KDP’s extensive public high-yield and leveraged loan markets knowledge and experience.

“We look forward to integrating KDP’s leveraged finance research and consulting services and its proprietary forward-looking default risk and loan recovery rankings into Obra’s suite of leading investment products and solutions.”

Through the acquisition, Obra Capital aims to extend its existing capabilities in structured credit, and asset and mortgage-backed securities into fundamental credit space.

The deal will also integrate Obra Capital’s diversified asset management strengths with KDP Investment Advisors’ high yield and leveraged loan research and asset management capabilities across the credit ecosystem.

Furthermore, Obra Capital expects to offer an expanded product suite including collateralised loan obligations (CLOs) and more liquid commingled fund vehicles.

Obra Capital CEO and president Blair Wallace said: “This transaction supports Obra’s expansion of our existing liquid markets capabilities in structured credit, and asset and mortgage-backed securities, into the fundamental credit space.

“By combining KDP’s established research with Obra’s diversified asset management capabilities, we expect to expand and augment our product suite to include the issuance of CLOs, where we are already an active investor, and more liquid commingled fund vehicles with a focus on fundamental credit to add to our existing structured and private strategies.”