CHARLOTTE, N.C. & GREENWICH, Conn.–(BUSINESS WIRE)–Stephen Riddell and Gallatin Point Capital LLC (“Gallatin Point”) today announced the launch of DS2 Capital (“DS2”), a credit investment firm specializing in actively managed collateralized loan obligation (“CLO”) strategies. Riddell, a veteran credit investor and former Chief Investment Officer of one of the largest U.S. CLO managers, will serve as Chief Executive Officer and Chief Investment Officer of the firm.
DS2 launches with significant institutional backing, including committed capital to fund CLO equity investments and initial working capital provided by funds managed by Gallatin Point and several additional institutional partners.
The firm is purpose-built to focus on CLO investing, with a long-term objective of expanding into adjacent strategies over time. Riddell is joined by Will Farr, a senior CLO executive with more than three decades of experience managing credit and CLO portfolios, including previously working alongside Riddell at Gulf Stream Asset Management. DS2’s broader team includes professionals who have partnered with Riddell and Farr across multiple market cycles and platforms.
“DS2 was founded to build a focused, credit-first investment platform designed to perform across market cycles,” said Stephen Riddell, Founder, Chief Executive Officer and Chief Investment Officer of DS2 Capital. “We believe disciplined underwriting, thoughtful portfolio construction, and an unwavering emphasis on loss avoidance are essential to CLO investing. We are launching DS2 alongside partners who share that long-term, underwriting-focused mindset.”
“Stephen and his team bring deep experience and a disciplined investment approach that we believe meaningfully differentiates DS2 in the CLO market,” said Matthew Botein, Co-Founder and Managing Partner of Gallatin Point. “DS2 exemplifies the type of high-conviction, founder-led platform Gallatin Point seeks to support, and we are pleased to partner with Stephen as the firm builds a durable CLO franchise.”
DS2 expects to launch its inaugural CLO in 2026.
About the Founder
Stephen Riddell
Chief Executive Officer and Chief Investment Officer
Stephen Riddell brings more than 30 years of experience in credit investing to DS2. Prior to founding the firm, Riddell was a founding member and served as Chief Investment Officer of Redding Ridge Asset Management, an independently managed affiliate of Apollo, through late 2024. Previously, he held senior credit roles at Capitala Group and within Apollo’s U.S. Performing Credit business. Earlier in his career, Riddell was a founding partner of CLO manager Gulf Stream Asset Management, which was acquired by Apollo in 2011.
About Gallatin Point
Gallatin Point Capital LLC is a private investment firm focused on opportunistic investments in financial institutions, financial services, and related assets. Gallatin Point partners closely with management teams and investors, seeking to align strategic capital with experienced leadership to maximize long-term value for all stakeholders. More information about Gallatin Point is available at www.gallatinpoint.com.
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