Bermuda-based credit insurer Primus Guaranty, Ltd. has completed the sale of CypressTree Investment Management, LLC (CypressTree), its third-party asset management subsidiary, to Commercial Industrial Finance Corp. (CIFC).

Terms of the transaction were not disclosed.

“The completion of this transaction enables us to further sharpen our focus on our key goal: preserving the value of our credit protection business in amortisation,” said Richard Claiden, Primus Guaranty’s chief executive officer. “At the same time, it ensures our CLO investors will continue to be well served by the top-notch professionals at CIFC.”

Peter Gleysteen, CIFC’s chief executive officer, stated: “Effective immediately, CypressTree’s activities will be operationally integrated within CIFC’s existing investment model, which we believe will benefit all investors in these funds.

“CIFC has implemented a plan to ensure a smooth, seamless transition of the management of the CLOs and other funds and their underlying investments into CIFC’s platform.”

CypressTree manages or subadvises approximately $2.6 billion of high yield and leveraged loan assets in seven collateralised loan obligations (CLOs) and two other funds. The collateral management contracts for the CLOs, as well as the two other funds, were included in the sale.

Primus Guaranty’s credit protection business, which consists of Primus Financial Products’ $11.8 billion portfolio of credit default swaps, is not affected by the sale.

Primus Financial Products will remain part of Primus Guaranty and will continue to be managed by Primus Financial portfolio managers.

Berkshire Capital Securities LLC acted as advisor to Primus on the sale of the CLO business.