The Carlyle Group isn't worrying about the PR fallout from that one fund blow-up. At least that is how it looks today.
The private equity giant has announced the close of the tenth U.S. Leveraged Finance team's Collateralized Loan Obligation, or CLO, fund. This one has been named the Carlyle Credit Partners Financing I and the funding was for $450 million.
The fund will use traditional CLO structure for AAA, AA, A and BBB rated liabilities. Carlyle believes this fund will allow Carlyle to purchase senior loans at attractive prices and finance them with 12 year debt. The advantage to this is that Carlyle noted that there will be no mark-to-market pricing triggers. That will allow these to be bought and held for the duration and will help allow for less of the mess in the current environment if the conditions of today prevail.
With the close, Carlyle now manages $10.3 billion in leveraged finance assets in CLO's. JP Morgan, of JPMorgan Chase & Co. (NYSE: JPM) completed the structuring and acted as placement agent.
Jon Ogg is producer and editor of the Special Situation newsletter for 247WallSt.com.
Carlyle jumps right back on the loan fund horse
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