Credit specialist Pemberton Asset Management launched its first European collateralized loan obligation (CLO) last week, raising €357.1 million ($378 million).
Indigo Credit Management I targets investments in publicly rated, liquid, broadly syndicated leveraged loans that are used for sponsor-driven or corporate M&A financing. The actively managed strategy is said to take a relative value approach to constructing a diversified credit portfolio using fundamental bottom-up/top-down analysis.
Robert Reynolds was appointed to lead the build out of the CLO strategy at the London-based firm in early 2022. He joined the firm with over 15 years of experience in the European leverage loan and CLO markets after a career in mainstream banking.
“The successful launch of our inaugural CLO reflects the continued attractiveness of the asset class and we thank J.P. Morgan, as lead arranger, and all our investors for their strong support throughout the process,” said Reynolds, head of CLOs at Pemberton. “Our first print is also testament to the strength of the Pemberton team, without whom this would not have been possible.”
The CLO strategy complements the $20 billion firm’s diversified multi-strategy alternative credit platform that includes three direct lending strategies: NAV financing, working capital finance and risk sharing. Pemberton continues to enhance its offer to its investor base by accessing different sections of the leveraged finance market, officials said.
Pemberton has also invested in the infrastructure to support its CLO business. Additionally, the team has grown to a size of four senior professionals backed by key support teams. The team also uses industry leading technology, according to Pemberton.
“The pricing of our first CLO enhances Pemberton’s reputation as a versatile, forward-looking multi-strategy credit manager,” said Symon Drake-Brockman, managing partner at Pemberton. “The introduction of our CLO platform is the natural next step in our vision to offer a broad range of investment opportunities in alternative credit for our investors.”