Well-known and established brand in fixed-income investment management, with good distribution capability. Experienced management team. Strong investment performance track record. Beneficial Carlyle ownership and significant management ownership. Fixed income accounts for 72% of total assets under management. Considerable debt leverage. Declining revenue stream from its joint-venture agreements. Negative tangible equity. The stable outlook reflects our expectation that the company will modestly increase AUM over the next 12-18 months to generate an EBITDA margin of 27%-30%, debt leverage below 2.5x, and interest coverage above 10.0x. We could lower the ratings if the company takes on more debt than the $355 million it used to fund the Carlyle transaction, it fails to replace the declining AUM and fees from EIG and the
