Credit Suisse Asset Management’s Credit Investments Group (CIG) held the final close of its first collateralized loan obligation equity-focused fund, raising $265 million in capital commitments.
The Edition CLO Opportunity Fund marks a new approach for one of the largest managers of CLOs globally with teams in New York and London.
“As a pioneer in CLOs, we are pleased to close our first CLO equity focused fund,” said John Popp, global head and chief investment officer of Credit Suisse Asset Management’s CIG. “The successful fundraising is a testament to CIG’s unrivalled expertise and experience in the non-Investment Grade space, and speaks to our team’s strength in loans and structured credit, as well as significant growing investor demand.”
The Edition CLO Opportunity Fund invests in a diversified, actively managed portfolio of equity tranches of CLO transactions, equity in CLO warehouses, as well as CLO mezzanine and senior debt tranches.
The fund invests across primary and secondary markets in both the U.S. and Europe, officials said, adding that the team has $60 billion in assets under management in non-investment grade credit strategies.
“CLO equity is structured to provide stable equity distributions, an opportunity for upside to pre-COVID levels, and floating rate income in a low rate environment,” said Amir Vardi, portfolio manager and head of structured credit at CIG at Credit Suisse Asset Management. “As a dedicated CLO manager, we have the ability to leverage our expansive corporate credit research team and CLO structuring expertise to deploy capital opportunistically for our investors.”