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BlueMountain European CLO fund hits peak

The US investment firm has held a final close of €410m for its debut CLO fund. The latest development is part of BlueMountain’s broader plan to establish itself in the European CLO market.

US-based private investment firm BlueMountain Capital Management has held a final close on its first European collateralised loan obligation (CLO) fund after raising €410 million in capital commitments.

The vehicle was arranged through US investment bank JP Morgan and has a mandate to invest in corporate leveraged loans in Europe. BlueMountain has experience of investing CLO capital having closed four new-issue CLOs in the US last year. The firm has deployed around $8.5 billion in CLO capital across 20 vehicles, according to a statement from the firm.

“We have made a strong commitment to building our European team with an eye toward capturing opportunities in the market,” said Nick Pappas, chief executive of BlueMountain’s European operations. Pappas was appointed to the firm in June 2015 and is tasked with leading the firm’s charge in further establishing itself in the EMEA region. Before joining BlueMountain, Pappas led the EMEA leveraged finance trading team at Goldman Sachs.

BlueMountain’s announcement follows Permira Debt Managers’ (PDM) holding of a first close of its CLO fund in March. The independent debt investment arm of private equity group Permira, PDM raised €160 million in commitments and is eyeing a total of €300 million overall for its fourth fund, titled Sigma 4, which it expects to close later this year.

BlueMountain manages more than $21.5 billion assets under management. $14 billion covers absolute return assets and the other $7 billion covers CLO assets. In November, the firm closed its second multi-asset opportunity fund, called Summit Opportunities Fund II, after it raised $1.3 billion of capital commitments.