The Carlyle Group has closed its latest collateralised loan obligation (CLO) fund on $507 million.
The fund, which was arranged by Citigroup, is the alternative asset manager’s fourth in the US so far this year. Named Carlyle GMS CLO 2016-4, the fund will invest predominantly in senior secured loans.
The firm priced three CLOs in the second quarter of this year at an average size of $450 million.
In a quarterly conference call in July, Carlyle indicated that a review of its global market strategies (GMS) business could result in an expansion of its loan origination and CLO businesses.
“The ability to originate loans is a good skillset to have,” said co-chief executive Bill Conway on the call. “We have increased the origination capability a lot already, we need to do much much more, and that is one of the things we will be looking at in our review of that platform.”
Conway added that he expected Carlyle to become a “big profitable player” in the CLO business.
The firm’s structured credit/CLO arm now has $18.8 billion in assets under management. Its global credit businesses include loans and structured credit, private credit, energy credit and distressed credit.
At the end of last week, Boston-based NewStar Financial closed its latest CLO fund, targeting mid-market loans, on $505 million. The Berkeley Fund CLO had a target of $400 million.