Redding Ridge Asset Management expands CLO portfolio with acquisition of Irradiant Partners

Redding Ridge Asset Management, an independently managed affiliate of Apollo, has announced a significant acquisition that will reshape its role in the collateralized loan obligation (CLO) and alternative credit markets. The firm has agreed to acquire Irradiant Partners, an alternative investment manager specializing in CLO asset management, private credit, and renewables. This transaction, pending regulatory approval, will add approximately $10.7 billion in CLO assets under management (AUM) to Redding Ridge Asset Management, boosting its total AUM to around $38 billion. Additionally, Apollo will integrate $2.2 billion of private credit and renewables AUM from Irradiant Partners into its portfolio.

The acquisition positions Redding Ridge Asset Management as one of the top five CLO asset managers globally, reinforcing its standing in structured credit. By expanding its portfolio and operational capacity, the company aims to strengthen its market presence and drive efficiencies through enhanced scale.

How Will This Deal Strengthen Redding Ridge Asset Management’s CLO Business?

Redding Ridge Asset Management has built a reputation as a key player in structured credit, focusing on CLO asset management and partnership investments. The addition of Irradiant Partners’ assets is expected to bolster its investment strategy, bringing new expertise in alternative credit investments and deepening its footprint in private credit expansion.

The strategic nature of the acquisition reflects broader trends in the alternative investment industry, where asset managers are seeking consolidation to achieve operational efficiencies and expand investment opportunities. By incorporating Irradiant Partners’ AUM, Redding Ridge Asset Management is enhancing its ability to navigate evolving market conditions, particularly in CLO asset management and private credit investments.

Industry analysts note that scale has become increasingly crucial in structured credit markets. With greater AUM, firms can negotiate better financing terms, improve risk diversification, and strengthen investor confidence. The addition of nearly $11 billion in CLO assets reinforces Redding Ridge Asset Management’s competitive edge, allowing it to offer institutional investors a more robust and diversified credit portfolio.

What Leadership Changes Will Take Place Following the Acquisition?

As part of the transaction, Irradiant Partners’ leadership team will integrate into Redding Ridge Asset Management and Apollo, bringing extensive experience in alternative credit investments. John Eanes, currently co-CEO of Irradiant Partners, will assume the role of Chief Investment Officer for Redding Ridge Asset Management US. His leadership will be instrumental in overseeing the firm’s expanded US portfolio and investment strategy.

Michael Levitt and Jon Levinson, co-founders of Irradiant Partners, will join Apollo, contributing their expertise in private credit expansion and structured finance. Their transition is expected to support Apollo’s broader alternative investment strategy, particularly in CLO asset management and renewables.

Bret Leas, a board member at Redding Ridge Asset Management and a partner at Apollo, highlighted the significance of the deal, stating that scale and operating leverage are critical in today’s market. He emphasized that this acquisition strengthens Redding Ridge Asset Management’s position as a leading global CLO asset manager, enhancing its capital base and investment capabilities.

John Eanes echoed this sentiment, expressing confidence that the acquisition would provide access to greater resources, expanded investment opportunities, and a broader investor base. He underscored that Irradiant Partners had built a strong presence in alternative credit investments and that the transition to Redding Ridge Asset Management would enhance its ability to serve institutional investors.

How Will This Acquisition Impact Investors and Market Dynamics?

The acquisition underscores the growing importance of scale and operational efficiencies in alternative credit markets. As institutional investors seek exposure to CLO asset management and private credit expansion, firms with significant AUM and diversified investment strategies are better positioned to meet market demand.

Redding Ridge Asset Management’s move aligns with broader trends in structured credit, where firms are focusing on consolidating assets and expanding their investment reach. By integrating Irradiant Partners’ expertise, Redding Ridge Asset Management is enhancing its ability to provide high-quality credit investment opportunities while strengthening its position in the global financial ecosystem.

Market analysts suggest that the deal could signal further consolidation in the CLO sector, with firms looking to expand through strategic acquisitions. The combination of Redding Ridge Asset Management and Irradiant Partners positions the company as a dominant force in structured credit, reinforcing its competitive advantage.

What Are the Next Steps for Redding Ridge Asset Management?

The acquisition remains subject to regulatory approval, with an initial closing expected in the second quarter of 2025. Redding Ridge Asset Management will finance the deal using cash from its balance sheet, though the financial terms of the acquisition have not been disclosed.

Upon completion, Redding Ridge Asset Management and Apollo intend to retain a majority of Irradiant Partners’ employees, ensuring continuity in investment management and operations. This approach is expected to maintain stability for existing investors while supporting Redding Ridge Asset Management’s long-term growth strategy.

The firm’s focus will remain on CLO asset management, alternative credit investments, and private credit expansion. With increased AUM and a strengthened leadership team, Redding Ridge Asset Management is poised to further establish itself as a leader in structured credit and institutional asset management.

Industry Outlook: What Does This Mean for the Future of Alternative Credit Investments?

The acquisition highlights the ongoing evolution of the alternative credit sector, where firms are leveraging strategic acquisitions to enhance their market positioning. As investor demand for diversified credit exposure grows, asset managers must scale their operations to remain competitive.

Redding Ridge Asset Management’s expanded portfolio could provide significant advantages in a market where structured credit continues to attract institutional capital. The firm’s disciplined investment approach, combined with its increased scale, positions it well for long-term success in CLO asset management and private credit expansion.

Key Leadership Biographies

John Eanes, the incoming Chief Investment Officer of Redding Ridge Asset Management US, has an extensive background in structured credit and alternative investments. Before his role at Irradiant Partners, he spent over a decade at Ares and began his career at Lehman Brothers. He holds a degree from the University of Pennsylvania.

Jon Levinson, currently co-CEO of Irradiant Partners, has played a significant role in private credit investments. He previously worked at TPG-Axon Capital Management and began his career in private equity at TPG Capital. Levinson is a graduate of Yale University.

Michael Levitt, Chairman of Irradiant Partners, has a long history in structured credit and private equity. He founded Stone Tower Capital in 2001 and expanded it into a $17 billion AUM platform before it was acquired by Apollo in 2011. Levitt holds a BBA and JD from the University of Michigan.