Targeting collateralized loan obligations
On January 2, 2018, The Carlyle Group (CG) announced fundraising for a structured credit fund. The company has raised capital of around $800 million. With the help of structured credit, the company plans to gain presence in the CLO (collateralized loan obligation) space.
The Carlyle Structured Credit Fund has been handled by experienced professionals, which could offer several opportunities in the credit space. According to the fund’s managing directors, Ronnie Jaber and Justin Plouffe, CLOs could be considered investment opportunities for investors well versed in credit fundamentals. Thanks to its structure, the fund can now make investments in the available opportunities.
Jaber has been part of Carlyle since 2008 and has solid experience in structured credit investments, and Plouffe has been working with the company since 2007. He oversees the company’s opportunistic and structured credit strategies.
As of September 30, 2017, Carlyle’s global market strategies division had total assets under management of $31.9 billion. Whereas Carlyle has an LTM (last-12-month) EBITDA (earnings before interest, tax, depreciation, and amortization) margin of 24.3%, peers (XLF) CBRE Group (CBG), Ameriprise Financial (AMP), and Brookfield Asset Management (BAM) have margins of 10.6%, 24.2%, and 24.4%, respectively.