Investors selected Prudential Fixed Income to serve as replacement manager for two CLOs: GSC European CDO III SA and GSC European CDO IV SA.
GSC III and IV are 2006/2007 vintage CLOs consisting primarily of European bank loans. Investors confirmed Prudential as replacement collateral manager on April 1. Prudential’s London-based CLO team expects to assume full management by the end of the month.
The assignment added over €800 million ($1.06 billion) in assets under management to the company’s alternative products business. Prudential Fixed Income is the fixed income asset management business of Prudential Financial.
“We’re pleased that the investors in these CLOs selected us and recognized the strength of our global platform and the expertise we bring through our Dryden deals,” said Sara Bonesteel, managing director and head of Prudential Fixed Income's alternatives business. “We have built a platform that offers comprehensive coverage of the European credit universe and we continue to look for opportunities to grow our European business. In particular, the scale of our platforms in the U.S. and in London creates efficiencies which allow us to be creative and flexible in pursuing similar replacement manager opportunities as the CLO manager market consolidates.”