CVC Credit closes fourth CLO equity fund at $1bn

CVC Credit has raised $1bn (£740.4m) of commitments for its fourth collateralised loan obligation (CLO) equity fund at final close, ahead of target and above its previous fund.

Across its four CLO equity funds, CVC has secured approximately $2.7bn of capital in aggregate.

During its period of deployment, CVC CLO Equity IV aims to support approximately $15bn of global CLO issuance for CVC Credit’s liquid credit platform.

The vehicle, which represents a 25 per cent increase over CVC CLO Equity III, will be used to make equity investments in CVC-managed CLOs issued in the US and Europe.

Since being activated in the second quarter of last year, CVC CLO Equity IV has allowed the global credit management platform to price five new CLO vehicles with an aggregate value of over $2.5bn. It is expected to support more than 30 new CLO issuances for CVC Credit’s CLO management platform.

“This successful fundraising, ahead of target and above the previous fund, is indicative of our continued fundraising momentum across the group,” said Rob Lucas, chief executive of CVC. “CVC Credit has experienced strong growth, underpinned by our CLO business, which over the past 20 years has developed into one of the world’s leading CLO platforms.

“This also follows our recent agreement to acquire Marathon Asset Management, which will further broaden our product offering and enhance our ability to drive continued growth in our credit assets under management in the future.”

Andrew Davies, managing partner and head of credit at CVC, added: “CVC’s CLO equity funds continue to be highly effective vehicles for investing in the global leverage loan asset class. They also enable the team to be flexible in their execution through any market environment, enhanced by active management of the capital structures to drive attractive returns.”

CVC Credit manages fee-paying assets of €45bn (£39bn) across its liquid credit and private credit businesses.