Alcentra has secured more than $1bn (£0.8bn) in equity capital commitments for its collateralised loan obligation (CLO) focused strategies.
The global alternative credit asset manager – which is a part of Franklin Templeton – said that the funds will be mostly invested in CLO mezzanine and equity via the firm’s third party CLO tranche investing platform.
A portion of the capital will form part of Alcentra’s second captive European CLO equity fund, contributing to approximately $4bn of assets under management in European CLOs over the next three years.
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Alcentra said that the new investment highlights the strong demand from institutional investors for opportunities in the global CLO market.
“We have seen a resurgence in the popularity of CLOs among major institutional investors over the past six months,” said Cathy Bevan, head of structured credit and portfolio manager at Alcentra.
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“The track record of our global structured credit business, the set-up of our team across US and Europe and our ability to be dynamic means we are very well positioned to capitalise on growing appeal of the asset class.”
Alcentra currently manages more than $18bn across European loans, European CLO issuance and global third-party CLO tranches, via its European liquid credit and structured credit businesses.
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