Neuberger Berman has launched a Ucits strategy solely focused on collateralised loan obligations (CLO) mezzanine debt securities with $77m of seed capital.
The fund, domiciled within Neuberger Berman’s Irish Ucits umbrella, is managed by senior portfolio managers Pim van Schie (pictured), Joseph Lynch, and Stephen Casey. It will invest primarily in US dollar and euro-denominated floating rate CLO mezzanine debt securities, as well as US high yield securities.
Neuberger Berman’s non-investment grade and structured credit team tallies 23 dedicated credit research analysts covering loans in CLO portfolios.
“CLO debt can offer economic and fundamental advantages over other asset classes and is typically issued with significant credit enhancement to absorb credit losses in the underlying loan portfolios. Neuberger Berman’s combined strengths of fundamental credit research, CLO structuring and legal expertise offers a unique position to seek to maximise this investment opportunity,” van Schie says.
Dik van Lomwel, head of EMEA and Latin America at Neuberger Berman, adds: “We have seen significant interest from clients who are comfortable with non-investment grade credit and are looking to capture the additional yield and fundamental credit enhancement offered by CLO debt. We are pleased to be able to extend our offering with this CLO UCITS fund designed for sophisticated investors.”
The fund is registered for sale in the UK and across the European Union while it is in the process of being registered in Switzerland.