Pearl Diver Capital has introduced its investment grade collateralised loan obligation (CLO) strategy to the wider market, having been operating since 2024 with early institutional backing.
The Pearl Diver Floating Rate Investment Grade Fund provides institutional investors with access to investment-grade CLO tranches across both US and European markets, and has a weekly liquidity structure which, according to Pearl Diver, offers greater flexibility in portfolio construction and trading decisions than daily liquidity vehicles.
Read more: Kartesia launches European CLO platform with €140m capital
The alternative credit asset manager attributed the outperformance of its investment-grade strategy against comparable investment-grade CLO exchange-traded fund (ETF) benchmarks to its ability to invest “dynamically” across primary and secondary markets and to access opportunities outside the predominantly US‑focused ETF universe.
While approximately 85 per cent of the global CLO market consists of US paper, by accessing European opportunities, Pearl Diver’s strategy provides additional diversification and return potential.
Indranil (Neil) Basu, founder and managing partner of Pearl Diver Capital, said he was seeing “compelling opportunities” in the investment grade CLO space, particularly for investors willing to “look beyond the constraints of daily liquidity”.
Read more: New York Life launches investment grade CLO ETF
Basu added: “Most investment grade CLO ETFs are constrained by daily liquidity and a US‑only mandate. Our approach is designed for institutional investors who value flexibility, diversification, and disciplined relative‑value positioning.”
The global investor manager is focused on structured credit and portfolio risk-transfer strategies, and has an investor base spanning public pension and retirement systems, corporate pension plans, university endowments and foundations, asset managers, large family offices and insurance companies.
In November 2025, Pearl Diver Capital announced the first close of its significant risk transfer fund, an open-ended global internal strategy.
