Freeport Financial, which will continue to be based in Chicago and operate under the same name, has an established platform originating, underwriting and managing middle market loans. Since 2005, the Freeport team has invested $1.47bn in 79 platform investments. The principals of the company, Matthew Gerdes, Josh Howie, Stephen Papalas, and Joseph Walker, will join Moelis to manage funds that will provide capital solutions across all sectors to middle market companies owned by private equity sponsors.
Ken Moelis, Chief Executive Officer of Moelis & Company, said, 'We believe that middle market companies are a growing but underserved segment. Today’s markets offer limited capital solutions to this segment and therefore we expect that middle market lending will offer investors superior risk adjusted returns. Freeport will enable us to provide another unique investment opportunity to institutional clients and serve the financing needs of private equity investors, and the management teams they support. Building in this space has always been part of our growth strategy as it will enhance our commitment to be a leading global investment bank that is focused on long-term, trusted relationships'.
Chris Ryan, Managing Director of Moelis & Company, said, 'With the acquisition of Freeport Financial, we have acquired a highly reputable team that has a successful track record in middle market lending. Freeport’s commitment to clients makes for a great fit with us. We welcome the Freeport team to Moelis & Company and look forward to growing our business in this area'.
Josh Howie, Managing Director of Freeport, said, 'Freeport is very pleased to join forces with Moelis & Company to provide greater opportunities to our clients. We believe the extensive Moelis network, in particular the Firm’s relationships with financial sponsors, will be very valuable to our investors'.
Other Moelis & Company asset management businesses include Moelis Capital Partners, a middle market private equity firm, Gracie Asset Management, a multi-strategy credit manager, and Moelis Australia Asset Management, which offers investors a specialist direct asset management capability in alternative asset classes.
Terms of the transaction were not disclosed.