Stephen Riddell and Gallatin Point Capital have launched a new credit investment firm, DS2 Capital, which specialises in actively-managed collateralised loan obligation (CLO) strategies.
DS2 launches with significant institutional backing, including committed capital to fund CLO equity investments and initial working capital provided by funds managed by Gallatin Point, as well as other institutional partners. The firm expects to launch its inaugural CLO in 2026.
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Veteran credit investor Riddell, who is former chief investment officer (CIO) of CLO manager Redding Ridge Asset Management and has over 30 years of experience in credit investing, will serve as chief executive and CIO of the business.
The firm’s main focus will be on CLO investing, with a long-term objective of expanding into other strategies over time. Riddell is joined by Will Farr, a senior CLO executive with more than three decades of experience managing credit and CLO portfolios, including previously working alongside Riddell at Gulf Stream Asset Management.
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“DS2 was founded to build a focused, credit-first investment platform designed to perform across market cycles,” said Riddell. “We believe disciplined underwriting, thoughtful portfolio construction, and an unwavering emphasis on loss avoidance are essential to CLO investing. We are launching DS2 alongside partners who share that long-term, underwriting-focused mindset.”
“Stephen and his team bring deep experience and a disciplined investment approach that we believe meaningfully differentiates DS2 in the CLO market,” said Matthew Botein, co-founder and managing partner of Gallatin Point. “DS2 exemplifies the type of high-conviction, founder-led platform Gallatin Point seeks to support, and we are pleased to partner with Stephen as the firm builds a durable CLO franchise.”
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