REIT Merges with External Manager

Alesco Financial Inc., a Philadelphia-based specialty finance real estate investment trust, is merging with its external manager Cohen & Co., a privately held investment firm specializing in credit related fixed income investments. Cohen & Co. will become a subsidiary of AFN after the deal is completed. In the merger, members of Cohen & Co will have the option to exchange each of their membership units for either shares of common stock of AFN, or replacement units of membership interest in Cohen & Co., which may be exchanged into shares of AFN in the future. The terms of the merger agreement include a "go shop" provision for AFN to pursue superior merger or other strategic opportunities for a period of 40 days from the date of the execution of the merger agreement. AFN's investment banker, Stifel, Nicolaus & Co., Inc. will evaluate any potentially superior opportunities. Daniel Cohen, chairman of AFN and Cohen & Co., said, "The fixed income and structured credit markets continue to be faced with significant challenges and dislocation. For companies with deep industry expertise and financial resources, this dislocation creates multiple opportunities for: value creation through strategic investments and acquisitions at attractive valuations; providing credit fixed income trading services to institutional investors that are currently underserved in this space; recruiting and retaining the best and brightest in the industry; and originations and underwriting of debt issuances as required by clients."