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.
