Permira prices debut US CLO and 11th European CLO

Permira Credit has priced its first US upsized collateralised loan obligation (CLO) at $430.6m (£360m) while its eleventh European CLO has been priced at €406.6m.

This marks Permira’s first foray into the US CLO market. The firm has been active in the European market since 2007, and the addition of the eleventh European CLO brings Permira’s European CLO assets under management to €3.9bn.

Following its success in Europe, Permira said that it now sees a significant opportunity to take Permira Credit’s liquid credit platform to the US.

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“Our first CLO in the US is a significant milestone for the credit platform at Permira and is something we have been targeting for some time,” said Ariadna Stefanescu, co-head of Permira Credit and head of liquid credit.

“There is a huge opportunity in the US credit market and we are looking forward to bringing to bear our investment strategy that delivered strong, risk-adjusted returns for investors in Europe.

“I am proud of what the firm has been able to achieve so far, as well as grateful to our investors who have continued to back us with this move. We’re looking forward to what’s to come.”

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Permira’s US CLO business will be run by a dedicated team of CLO specialists, led by Stefanescu. Jared Adler is the portfolio manager, Doug Schwartz is CLO structurer, Dries De Craemer, James Kang, and William O’Connell have been appointed as credit analysts, while Taniya Heyn is working on CLO operations.

The US CLO strategy will take the same approach as the European CLO business. This includes a defensive portfolio construction with a focus on resilient sectors such as technology, healthcare and business services; active portfolio management; and responsible investing.

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