Orrick swoops for top-ranked London CLO team from Cadwalader

Orrick has made a major structured finance play, poaching a four-partner CLO team from top-ranked Cadwalader in London, according to several people familiar with the matter.

Another four US-based partners are also understood to be moving over to Orrick. It's not yet clear how many associates are going with the teams on either side of the Atlantic.

In London, the group includes some of the biggest names in Cadwalader’s CLO practice, widely regarded as one of the City's strongest. The team is understood to include leading name David Quirolo, who joined from Ashurst just over a decade ago to build out the practice, along with partners Claire Puddicombe (also ex-Ashurst), Alex Collins and Daniel Tobias.

Neither firm immediately responded to requests for comment.

London moves

The move is an eye-catching one from Orrick. While the firm is considered to have a top structured finance practice in the US, it hasn't had the same profile in London - a market where it’s also seen recent exits. In June, a four-lawyer structured finance team left for Dechert, including partners Sushila Nayak and James Jirtle.

London's CLO advisory scene has already been shaken up this summer. In June, Latham recruited an 11-lawyer team from A&O Shearman led by star CLO partner Franz Ranero. The space is dominated by US firms, with Milbank, Weil and Paul Hastings among the chief rivals.

Strong CLO market

The $1 trillion-plus global CLO market is a major asset class within the wider structured finance market. CLOs bundle together loans and repackage them into bonds sold to investors. The deals generate fees for managers and arranging banks, with issuance remaining strong despite wider market uncertainty.

The private credit boom is adding more fuel, with demand growing for so-called "middle market" CLOs backed by loans made by private credit firms rather than the traditional syndicated loan market.