Sagard launches CLO equity fund
Alternative asset manager Sagard has launched a new collateralised loan obligation (CLO) equity fund.
The Sagard CLO Equity Fund will aim to invest in the equity tranche of the future Sagard | HalseyPoint CLOs, which are a diversified pool of leveraged loans managed by Sagard | HalseyPoint.
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It will target the equity tranche, the highest-return segment in a CLO structure, and will aim to provide investors with quarterly cash flow while managing risk through diversification.
The Sagard team and affiliates, along with other major institutional investors, have so far committed $92.5m (around £69m) in capital. The fund aims to raise an additional $157.5m to reach a target size of $250m.
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“We are excited to partner with Lynn Hopton and Yvonne Stevens’ team at Sagard | HalseyPoint to offer our expertise to new investors in CLO equity,” said Adam Vigna, chief investment officer at Sagard.
“In a leveraged loan market of about $1.5tn, there are very few managers who not only have a deep grasp of market dynamics but also have built the sourcing relationships in the broadly syndicated loan market. We believe these qualities position us to consistently deliver potentially attractive returns.”
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