The Carlyle Group, one of the largest U.S. CLO managers, has raised another $800 million to put to work collateralized loan obligations run by other U.S. and European managers.
The $800 million Carlyle Structured Credit Fund will invest in both by participating in initial offerings of CLO securities as well as by acquiring securities in the secondary market. In a press release, the money manager said the new fund would “opportunistically” invest in pools of loans that “overlap with Carlyle’s fundamental credit expertise.” A Carlyle spokesman confirmed the funds would be used for purchasing senior and mezzanine debt tranches of third-party CLOs as well as acquiring equity ownership stakes.
The new fund will be added to the $19.4 billion in structured credit investments that Carlyle manages under its $32 billion Global Market Strategies umbrella, which also includes leveraged loans, private debt and distressed debt.
The deal would be the largest capital raise since gathering up nearly $1 billion for new international oil and gas investments in November. In the third quarter it also reached nearly $1 billion for a newly launched credit-opportunity fund specializing in bargain distressed assets.
In October 2016, Carlyle committed to raise more than $100 billion in new investment capital through 2020 to take advantage of investor appetite for higher-yielding alternative investments.
The structured credit fund is headed by two managing directors, Justin Plouffe and Ronnie Jaber. Plouffe has been the portfolio manager on the firm’s secondary CLO investments, and Jaber is head of investing and trading structured and opportunistic credit products.
The group also house Carlyle's managed CLO business. In 2017 Carlyle issued five U.S. CLOs into the market totaling $2.96 billion in notes, well as three euro-denominated CLO portfolios which added €1.29B to the deal pipeline.