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Tuesday, 23rd April 2024
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CLO manager chooses Dublin Back  
Guggenheim Partners, the US diversified financial services firm, chose Dublin over London for its new European collateralised loan obligation (CLO) operation.

Adrian Duffy, managing director of the new operation, told FINANCE that the pool of talent in Dublin was a major factor in the firm choosing the location over London. Although many firms have complained about the diminishing labour pool in Dublin, Duffy believes that it is easier to retain staff in Dublin. He said, ‘I like the notion of being able to build a team and hold onto them. London is too competitive for talent’.

Other key factors in Guggenheim choosing Dublin included the low tax rate and its proximity to London and other major European centres.

In recent years Ireland has established itself as a CLO centre of some note, with leading European players such as Bank of Ireland, AIB, Avoca Capital, Harbourmaster Capital and Zais located in Dublin. ‘London is too competitive for talent and we offer something more unique in the Dublin marketplace’.

However, while Duffy acknowledges that the presence of these operations helped make the case for a Dublin location, it wasn’t a ‘material’ reason to locate there.

The firm has currently applied for regulatory approval with the Financial Regulator, and according to Duffy, it is expected that Dublin office will open at the end of March.

The new operation will employ around ten people initially, with two/four moving over from the US operations, and six being recruited locally.

Duffy is moving over from the US, where Guggenheim started its leveraged finance division five years ago, and is now a sizeable player, with $10 billion in assets under management. In the US, Guggenheim’s leveraged finance division has relationships with both Deutsche Bank and Wachovia, and the Irish operation will also have a working relationship with an as of yet, undisclosed investment bank.

Guggenheim has a link with Bank of Ireland, as in February of this year, the bank acquired 71.5 per cent of Guggenheim Alternative Asset Management, the hedge fund division of Guggenheim Partners. As part of the deal, Guggenheim Partners retained 17.5 per cent. However, Duffy asserts that the new leveraged finance operation is a stand-alone company.

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