CVC Credit, the $41 billion global credit management business of CVC, closed CVC CLO Equity III at its hard cap with $800 million of commitments. Across its period of deployment, this equity fund is intended to support more than $10 billion of global CLO issuance for CVC Credit’s performing credit platform.
CVC CLO Equity III is CVC Credit’s third dedicated CLO equity vehicle and represents a significant increase over CVC Credit’s prior raises. It will be used to make equity investments in CVC-managed CLOs issued in the US and Europe. In aggregate, CVC Credit has now raised $1.66 billion of capital across its three CLO equity funds. Since December 2020, CVC Credit’s assets under management have grown from $28 billion to $41 billion.
“My team and I are extremely grateful to our investors for their extensive engagement and trust that has made this process possible. In times of market volatility the ability to control the pace of new CLO issuance, rather than relying on third-party CLO equity, is a real advantage and already in the year to date, CVC CLO Equity III has enabled us to price six new CLOs vehicles with an aggregate value of nearly $3 billion,” Gretchen Bergstresser, managing partner and global head of performing credit at CVC Credit, said. “We remain extremely focused on delivering attractive returns for our investors and, while we believe that current market conditions provide an attractive investment opportunity, we will continue to be highly diligent in pricing new CLOs and selecting and constructing portfolios of high quality assets.”
“CVC Credit is central to everything we’re building across CVC and our ability to lever the CVC Network delivers a real competitive advantage in sourcing and assessing investment opportunities,” Ken Young, managing partner, chief operating officer of CVC and chair of CVC Credit, said. “We are extremely proud of everything the team has achieved, their investment discipline and the investment returns they are delivering for our investors. We remain highly focussed on building on this success over the next few years, supporting our sponsor clients and delivering for our investors.”
CLO Equity III is expected to support more than 20 new CLO issuance for CVC Credit’s management platform. To date the vehicle has funded 11 new transactions with an aggregate value of $4.8 billion.
Paul Hastings advised CVC on this matter.
