Aladdin Buys Solent Credit Hedge Fund, CDO Business

Nov 18 2009 | 11:19am ET

Aladdin Capital Holdings has acquired Solent Capital Partners’ collateralized debt obligations business, including its credit hedge fund.

Stamford, Conn.-based Aladdin will take over Solent’s Propeller hedge fund and nine synthetic CDOs, with combined assets of about $750 million.

“There is more consolidation to come,” Neal Neilinger, Aladdin’s chief investment officer, told Bloomberg News. “Managing $11 billion in assets is more efficient than managing $1 billion. These transactions make it harder for smaller firms to operate.”

Aladdin boats $11.9 billion in assets.

For its part, Solent said it was getting out of a moribund business: With no new CDOs likely to be issued any time soon, there is no opportunity to grow.

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