Fortress Investment Group has priced its third European collateralised loan obligation (CLO) at €406m (£347m) amid “strong demand”, marking an expansion of its performing credit platform in European markets.

Fortress Credit Europe BSL 2026-3 DAC, which is managed by Fortress affiliates, invests primarily in senior secured, first lien, broadly syndicated loans, diversified across geographies and industry sectors.

Read more: Fortress originates $5.8bn in new direct lending commitments in 2025

The reinvestment period for BSL 2026-3 runs until April 2031.

Regang Ou, managing director at Fortress, said there was “strong demand for this transaction” from both returning and new investors.

The global investment manager launched its European CLO platform in November 2024 with the pricing of its first European CLO, Fortress Credit BSL 2024-1, at €450m.

Its second European CLO raised €408m when it was priced in July last year.

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“The pricing of our third European CLO reflects the momentum we’ve built in the European performing credit market and the depth of investor confidence in our platform,” said Niccolò Biancheri, head of European corporate credit at Fortress. “Each successive transaction has allowed us to broaden our investor base and refine our approach, from collateral selection through to structure, and we’re excited to continue scaling this franchise.”

Since 2004, Fortress has issued approximately $41.5bn (£30.7bn) of CLOs across its Euro-denominated and US dollar-denominated CLOs. 

The firm manages $54bn of assets across credit and real estate, private equity and permanent capital investment strategies.

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