Ex-Madison Capital execs launch mid-market lending unit for Angelo Gordon

  • Clark, Williams left Madison Capital under cloud
  • Angelo Gordon sees a ’substantial’ opportunity
  • New line of business launching in 2015

Angelo Gordon said it plans to launch the enterprise in the first quarter of 2015. It intends to leverage its network of private equity firms with which it has done business in the past.

Michael Gordon, co-founder and chief investment officer of Angelo Gordon, said the firm sees an opportunity to address a “substantial” opportunity to “help close the funding gap for middle market companies,” according to a prepared statement.

John Angelo, co-founder and CEO of Angelo Gordon, said the pair offers “depth of expertise and a reputation in the industry that (are) truly impressive,” according to a prepared statement.

Angelo Gordon declined an interview request from Buyouts.

Chris Williams and Trevor Clark earlier co-founded and built the direct lending business at Madison Capital, a unit of New York Life. Clark was CEO of Madison Capital and Williams was senior managing director.

Reports surfaced last year that Clark and Williams left because they allegedly broke rules around personal investments while at New York Life. A spokesman from Angelo Gordon said the firm conducted “extensive due diligence” on the team and declined to comment on their exit from New York Life. A New York Life spokesman did not comment on the pair, but said that insider Hugh Wade was named permanent CEO of Madison Capital in January after stepping in on an interim basis.

Clark said he shares Angelo Gordon’s “emphasis on collaboration across disciplines and its research-driven approach to investing,” according to a prepared statement. Williams said the business of lending directly to the middle market will grow as the shift to non-bank lenders continues.  

In other expansion moves, Angelo Gordon added an energy team for credit investments and named Larry Schloss as president to help grow its alternatives business. Schloss had most recently worked as chief investment officer of the New York City Retirement System.