Jan 7, 2010 (Kristen Haunss Bloomberg): Dock Street Capital Management LLC will replace ING Clarion Capital as the collateral manager for a high-grade asset-backed debt fund, according to David Crowle, a Dock Street managing partner.

The fund had an event of default in early 2008, giving investors the ability to remove the manager, Crowle said in a telephone interview today. ING was given notice of its removal as manager of the Biltmore CDO 2007-1 on Dec. 10, he said. It has $655 million of outstanding collateral, he said.

Collateralized debt obligations, or CDOs, pool high-yield, high-risk bonds and slice them into securities of varying risk and return. Dock Street, a New York-based liquidation, advisory and management firm, was founded last year by former employees of KBC Group NV’s investment-management arm. It has taken over management responsibilities for three other funds, and handled 12 public CDO liquidations and 15 private CDO liquidations, Crowle said.

“We continue to be an active liquidation agent both on the public and private side,” he said. Suzanne Franks, a spokeswoman for ING Clarion in New York, didn’t immediately return a telephone call seeking comment. Dock Street’s other managing partners include Patrick K.