CDOs/CLOs

The fund closes ahead of separate news that it formed the Private Real Estate Credit platform, which will originate senior and subordinated commercial real estate loans.

Apollo will assume about $2.2 billion of private credit and renewable assets from Irradiant, while RRAM will add almost $11 billion of CLO assets to its firm.

With that sizable fire power, Alcentra hopes to meet the growing market demand for collateralized loan obligations.

The French bank foresees CLO growth in U.S. and Europe but cautions wariness around the current administration's potential impacts to inflation and the economy.

Refis and resets surge in January as AAA spreads continue to tighten

Collateralized loan obligation activity should increase despite higher-for-longer rates and liability management exercises.

The $1 billion deal included classes A-L-A and A-L-B were offered as loans.

The fund's managers are hoping to replicate the success of their US-focused ETF, which has amassed $17.2 billion in assets under management in less than five years.

Classes A through E, do not allow for payment-in-kind, which allows borrowers to use assets other than cash—such as equity or shares—to make interest payments.