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New Investors, New Name, and New CEO for Halcyon

TPG Sixth Street Partners and Dyal have taken stakes in the credit shop, which is rebranding as Bardin Hill Investment Partners.

Credit-oriented investment firm Halcyon Capital Management has sold minority stakes to two asset management firms — and it’s getting a new CEO and a new name in the process. 

TPG Sixth Street Partners (TSSP), a $27 billion credit investment manager with ties to alternatives firm TPG, has made a new minority investment in Halcyon, while Dyal Capital Partners has topped up its existing minority investment with additional capital. Dyal, a division of Neuberger Berman, buys minority stakes in alternative asset managers. It has made 35 such deals so far, including a previous investment in TSSP.  

At the same time, Halcyon, which manages $10 billion, announced that chief investment officer Jason Dillow — who had previously worked with several TSSP executives at Goldman Sachs — is now the firm’s chief executive. Previous CEO John Bader has retired. The firm also said it will change its name to Bardin Hill Investment Partners. 

All of the equity sold in the transactions is new equity issued by the firm, and no current owners are selling their stakes, according to the announcement. The investments are passive and will not result in further changes to the day-to-day management and operations of the firm. 

Halcyon was founded in 1981 and focuses on a variety of credit strategies, including distressed and stressed debt, performing credit, and liquidations and cash-outs, as well as litigation-driven investing, merger arbitrage, and event-driven equity strategies.

“This investment is a unique opportunity for TSSP to align with someone our partnership group knows well and where our team sees clear opportunities for collaboration,” TSSP’s partners said in the announcement. “We have confidence in Jason and his colleagues. TSSP is pleased to invest as they build the next generation of their business.” 

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