Cohen & Co Inc. completes sale of CDO management rights for $837,447

Published 09/07/2025, 22:26
Cohen & Co Inc. completes sale of CDO management rights for $837,447

Cohen & Co Inc. (NYSE American:COHN) announced Wednesday the completion of the sale, assignment, and transfer of its rights and obligations under certain collateralized debt obligation (CDO) management agreements to HCMC III, LLC, an affiliate of Hildene Capital Management, LLC.

According to a statement based on a Securities and Exchange Commission filing, the transaction involved Cohen & Company Financial Management, LLC, a subsidiary of Cohen & Co Inc., transferring all rights and obligations in the Collateral Management Agreements and Collateral Administration Agreements for Alesco Preferred Funding V, Ltd. and Alesco Preferred Funding VIII, Ltd. The aggregate purchase price for the transaction was $837,447, following required purchase price reductions as outlined in the Master Transaction (JO:NTUJ) Agreement.

The agreement, originally entered into on March 13, 2025, provided for multiple closings, with each closing contingent upon the satisfaction of certain conditions for the assignment of each CDO agreement. The closing announced Wednesday covers the agreements related to Alesco Preferred Funding V, Ltd. and Alesco Preferred Funding VIII, Ltd.

Hildene Capital Management, based in Stamford, Connecticut, is an SEC-registered investment adviser with experience in managing CDOs backed by trust preferred securities.

The company stated that further details of the Master Transaction Agreement are available in its Quarterly Report on Form 10-Q for the period ended March 31, 2025, filed with the SEC on May 2, 2025.

In other recent news, Cohen & Company Inc. reported a significant financial turnaround in the first quarter of 2025, achieving a net income of $300,000, or $0.19 per fully diluted share. This marks a notable improvement from the previous quarter’s net loss of $2 million. The company’s new issue and advisory revenue saw a substantial increase to $33.2 million, up by $23.2 million from the prior quarter. Despite these positive earnings, Cohen & Co’s total equity decreased to $85.7 million from $90.3 million at year-end. The firm also launched a new SPAC-focused equity trading desk, indicating a strategic pivot to capture more opportunities in the SPAC sector. However, challenges persist with mark-to-market issues in its principal investing portfolio, resulting in a negative principal transactions revenue of $15.7 million. Analysts from various firms have noted the ongoing volatility in the SPAC market as a potential risk to future earnings. Cohen & Co remains optimistic about its future earnings potential and plans to evaluate its dividend policy quarterly.

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