London-based private equity firm Permira is closing on its second CLO designed to meet the European Commission’s proposed environment, social and governance (ESG) criteria for institutional investors.
The firm’s London-based Permira Debt Managers debt management and advisory unit is sponsoring Providus CLO II, a €350 million transaction that follows the Permira’s first post-crisis CLO earlier this year, the €362.5 million Providus CLO 1.
Providus CLO II will issue seven classes of notes, including a €217 million, triple-A rated Class A series tranche. The London office of Moody’s Investors Service issued ratings on the new transaction on Thursday.
The deal has 90% of its target portfolio identified, and will have a seven-month ramp-up period to fill out the pool, according to Moody’s.
The firm's website notes the Providus CLO platform is restricted to loans and investments that Permira's specialty debt arm makes to mid-sized European companies that meet Permira’s environmental sustainability standards. The loans can be made both to firms held by private equity firms and those not held by private equity firms.
Permira’s green criteria follow proposed sustainability classifications the EC and other European regulators are developing to formalize green/social investment criteria for institutional buyers and money managers.
Permira has financed more than 100 European firms with over €4.2 billion in capital since 2007.
The February launch of Permira’s CLO management business revived a business line that sat dormant for a decade.
