Alts managers GSC hires CDO specialist

FWR Staff

2 May 2006

Appointment of former NBP manager part of structured-finance buildout. GSC Partners has put Thomas Dial in charge of its structured-finance group, giving him responsibility for managing portfolios and structuring collateralized debt obligations and whole-loan securitizations. The move is part of a practice-specific buildout at GSC that began last year with the hire of Frederick Horton, formerly of Trust Company of the West, as head of GSC’s structured-finance group.

“Tom has had a very active career in structured finance and asset-backed securities, becoming familiar with this multi-faceted business from the bottom up,” “ He has shown the talent, discipline and innovation that will make him a natural addition to our team," says Horton, referring to Dial. "Appointing is another step toward building GSC's structured finance practice into a leading alternative investment group in the sector.”

Prior to Dial’s appointment, Horton has made a number of other senior-level hires since his arrival at GSC in March 2005, including those of Edward Steffelin, Daniel Castro Jr., and Wenbo Zhu.

Dial comes to GSC from Natexis Banques Populaires, where he managed a $500-million mezzanine CDO portfolio, consisting of corporate cash-flow, market-value and asset-backed CDOs. In all, Dial has over 12 years experience in structured finance and asset-backed securities.

A CDO is a structured finance product typically used to securitize a diversified pool of debt assets. They offer investors access to a diversified and actively managed portfolio of credit risks in a single investment that provides enhanced returns against various risk tolerances.

Cash-flow CDOs are managed to pay off liabilities from the interest and principal payments of collateral. Market-value CDOs are managed to pay off liabilities through the trading and sale of collateral. In other words cash-flow CDOs focus primarily on managing the credit quality of the underlying portfolio rather than on the volatility of its market value.

Florham Park, N.J.-based GSC says in manages more than $9 billion in assets; its structured-finance group – which manages a mortgage REIT, hedge fund and multiple asset-backed securities CDOs – accounts for about $2.3 billion of that. –FWR