3i raises €452m for CLO fund

Harvest XVI is the second CLO fund closed by 3i this year, and the first since the Brexit vote. It targets investments in senior secured loans used by private equity sponsors for buyouts.

Private investment firm 3i Group has closed its latest CLO vehicle after raising €452 million in capital commitments.

The firm announced the closing of Harvest XVI, the title of the fund, yesterday and it is the second CLO vehicle closed this year by the firm and the first since the UK’s vote to leave the European Union. Jeremy Ghose, chief executive of 3i Debt Management, the private debt investment arm of 3i, told PDI earlier this year that it had delayed the launch of Harvest XVI until the vote was resolved.

In May, the firm raised €413 million on a final close of the preceding vehicle, Harvest XV. The latest incarnation of the CLO fund will predominantly focus on senior secured loans, which will be used to back private equity sponsored buyouts in Europe. The total transaction period for the fund is four years.

3i Debt Management’s total assets under management were $11.6 billion, as of March 2016. It specialises in investing in the corporate debt of medium and large European and US companies.

On the closing of the latest fund, Ghose said he was pleased to have closed Harvest XVI. “Since the CLO market reopened in Europe in 2013 we have raised €3.8 billion across nine CLOs. Our ability to continue to grow our assets under management despite the challenging macro and market conditions is a reflection of the quality of our platform.”