DFG Investment Advisors has raised a $100 million fund that it will use to satisfy impending regulations enacted as part of the Dodd-Frank Act requiring CLO managers to have “skin in the game” of their deals.

Come Dec. 24, managers of collateralized loan obligations will be required to hold 5% of the economic risk of any new transactions. This is an onerous requirement for firms that manage money on behalf of others, but have little balance sheet assets of their own. Under the regs, a manager of a $400 million CLO would have to retain $20 million of the securities on its books.

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