CVC Credit raises $800m for third CLO equity vehicle

CVC Credit has tapped investors for $800m for its third vehicle dedicated to Collateralised Loan Obligations (CLO).

The European private equity giant announced this morning the final close of CVC CLO Equity III at its hard cap with $800m of commitments.

Across its period of deployment, the equity fund is intended to support over $10bn of global CLO issuance for CVC Credit’s performing credit platform, the company said.

Since December 2020, CVC Credit’s assets under management have swelled from $28bn (€23bn) to $41bn.

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CVC CLO Equity III is CVC Credit’s third dedicated CLO equity vehicle. It will be used to make equity investments in CVC-managed CLOs issued in the US and Europe. In aggregate, CVC Credit has now raised $1.66bn of capital across its three CLO equity funds.

“In times of market volatility the ability to control the pace of new CLO issuance, rather than relying on third-party CLO equity, is a real advantage and already in the year to date, CVC CLO Equity III has enabled us to price six new CLOs vehicles with an aggregate value of nearly $3 billion,” said Gretchen Bergstresser, global head of performing credit at CVC Credit.

CLO Equity III is expected to support more than 20 new CLO issuance for CVC Credit’s management platform. To date the vehicle has funded 11 new transactions with an aggregate value of $4.8 billion (€4.6bn).

CVC was advised by Paul Hastings.

Source: Private Equity News

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