MidOcean’s first CLO equity fund beats $300m target
US alternative asset manager MidOcean Partners has surpassed its $300m (£236m) target at the final close of its inaugural collateralised loan obligation (CLO) equity fund.
The MidOcean CLO Equity Fund I attracted $304m of capital commitments from a diverse range of institutional investors including new and existing clients.
The fund purchases equity in CLOs managed by MidOcean’s team, led by CLO industry veterans Joseph Rotondo and Jamil Nathoo.
Read more: Moody’s: Middle-market CLO issuance on the rise
The team has a defensive investment strategy, aiming to create a diversified and downside protected portfolio of senior secured leveraged loans, weighted toward the larger and more liquid end of the broadly syndicated bank loan market.
To date, the fund has deployed approximately 55 per cent of its capital across seven MidOcean CLOs, collectively representing $2.8bn of assets under management.
Read more: Nuveen launches CLO ETF
“We are pleased to close our debut CLO equity fund, which represents a significant milestone for MidOcean as we continue to expand our credit platform’s capabilities and best position the firm to capitalize on the $1tn and growing CLO market opportunity,” said Rotondo.
“We believe today’s market provides a unique opportunity to identify credits that will perform well through the credit cycle and look forward to executing on that opportunity for the benefit of our investors.”
Nathoo added: “We believe MidOcean’s long track record in the CLO sector, combined with our innovative fund structure and differentiated investment approach, contributed to the demand for this product by sophisticated investors. This capital will enable us to be nimble and opportunistic during an exciting and dynamic time for the CLO market.”
New York-based MidOcean Partners specialises in middle-market private equity, alternative credit, and structured capital. It has been active in the CLO space for more than a decade.
Read more: AXA IM Alts closes two CLOs with €754.5m in total
