Investcorp, a leading global provider and manager of alternative investment products, said its credit management business has closed an approximate €250 million ($293 million) collateralized loan obligation (CLO).
The closing of the Harvest CLO XXIV DAC (Harvest XXIV) deal, its second in 2020, comes following the successful closing of €489 million Harvest CLO XXIII in March 2020, which remains the largest European CLO issued year to date.
This transaction also represents the firm’s 17th 2.0 (second generation, post-financial crisis) European CLO and brings total assets under management (AUM) in European CLOs to over €7 billion.
According to Investcorp, the CLO attracted strong interest from 19 external investors and is backed by a diversified portfolio of senior-secured leveraged loans across typically defensive, resilient industries such as Services, Healthcare, Software and Education.
The notes offered in the transaction are subject to a one-year non-call and three-year reinvestment period, it stated.
Jeremy Ghose, Global Head of Investcorp Credit Management, said: “We are pleased to have successfully closed Harvest XXIV as we believe the current environment offers attractive opportunities to invest in strong, performing assets at attractive levels.
"Following the final close of our Mount Row (Levered) Credit Fund in May, this brings total new AUM raised in 2020 year to date to US $1.5 billion. We believe this latest milestone is a testament to the strength of our credit platform and our team’s ability to capitalize on market opportunities in a post COVID investment landscape."
"We are grateful to our new and existing investors for their continued support and enthusiasm for our credit investment strategy," he noted.
Investcorp’s Credit Management business manages approximately $13 billion AUM globally and is among the largest leveraged loan credit managers in Europe. Investcorp Credit Management has a more than 15-year history of investing across global credit markets and ranks as a top five European CLO manager.