Exclusive: CIFC plots second CLO co-investment fund

The New York credit manager plans to raise $250m for its next closed-end fund that will co-invest in the warehouses, equity and mezz bonds of CIFC and third-party CLO deals

US credit manager CIFC plans to start fundraising for its second CLO co-investment fund in the fourth quarter. The fund, called the CIFC CLO Co-Investment Fund II, will invest in the warehouses, equity and mezzanine bonds of CIFC originated CLO deals, as well as those of third-party managers, according to a source familiar with the plans. The second fund is broader, and also targeting a larger fund size, than the first vehicle, which only co-invested in internal CLO deals.

CIFC declined to comment onthe fundraising.

The first CIFC CLO Co-Investment Fund finished raising capital at about $52 million last fall. That fund is now fully invested.

CIFC also announced the closing of its second CLO of the year, the CIFC Funding 2015-II, in May. The issuance represented $513.4 million of par value of notes and approximately $500 million of new assets under management. The transaction was led by Barclays Capital and supported by 24 institutional investors. 

CIFC is a publicly-listed, fundamentals-based, relative value alternative credit manager with about $14 billion of assets under management. The firm is headquartered in New York and was founded in 2005.