The role of back-up manager in a whole-business securitization has long been a relatively sleepy one.
These managers are not true sponsors or asset managers but rather consultancies who step in during turbulent times, such as bankruptcies. They’re usually seen as temporary stewards, making sure the lights stay on and the bills get paid until things return to normal for the underlying businesses, sometimes under new ownership.
But the job has taken on increased importance in the wake of WBS deals that ran aground following the TGI Fridays, Hootersand FAT Brands bankruptcies. And the space, long dominated by a single firm, is starting to see increased competition. At the same time, back-up managers are able to ask for more favorable terms on pricing and oversight given their heightened visibility.
Historically, FTI Consulting has held down most WBS back-up manager slots, and the consulting firm stepped in November 2024 as TGI Fridays entered bankruptcy. But lately, sources told 9fin, AlixPartners has been stepping into these slots, edging out FTI amid a new air of competition.
“In the WBS deals that we’ve rated, there’s really been [only] FTI for years and years and years, and then AlixPartners coming in...
