CVC Cuts 15 Jobs in Distressed Debt to Focus on New Deals

(Bloomberg) -- CVC Credit Partners is letting go around 15 distressed-debt specialists and other staff as it shifts its strategic focus toward lending directly to riskier companies, according to people familiar with the matter.

The firm’s realignment away from distressed-debt trading in favor of writing private loan deals emulates rivals like Blackstone Group Inc.’s credit unit and HPS Investment Partners. The company is also reviewing options for its U.S. direct lending business, including a sale, two of the people said.

A spokesperson for CVC declined to comment on the strategy.

As part of the overhaul, Ran Landmann and Josefa Llinares, managing directors on CVC’s Credit Opportunities and Special Situations team in London, are leaving, according to the people familiar with the matter. Director Mitchell Glynn is staying at CVC where he will join the liquid business arm, the people said, asking not to be named because the information is private.

The staff cuts follow the departure of Mark DeNatale, global head of special situations, earlier this year. Separately, Tom Newberry, global head of direct lending, is retiring, the people said.

Glynn and Landmann declined to comment when contacted by Bloomberg News, while Llinares and Newberry didn’t return messages seeking comment.

CVC has $5 billion under management in troubled businesses as well as direct loans to mid-sized companies. Distressed debt is an area of trading that’s risen to greater prominence during the global coronavirus pandemic.

Debtwire first reported the change of strategy on Thursday.

©2020 Bloomberg L.P.