Permira prices €362.5m ethical CLO

The latest CLO is part of a new strategy of ESG investing adopted by the fund manager.

Permira Debt Managers (PDM) has priced its latest CLO, worth €362.5 million, with closing expected in six weeks’ time.

The Providus CLO I is, according to PDM, one of the first CLOs in Europe to contain environmental and social governance (ESG) eligibility criteria.

ESG criteria place restrictions on the types of industries that funds can invest in for ethical reasons, for example, barring investment in weapons manufacturers or tobacco companies.

PDM said Providus CLO I is the first “2.0 CLO” and the beginning of its new CLO management platform. Before setting up Providus, it has run the Sigma strategy since 2010, a series of funds that made over 120 investments in more than 30 CLO managers.

To support the growth of the Providus strategy, PDM has put a dedicated CLO team in place, including PDM CIO Thomas Kyriakoudis and portfolio manager Ariadna Stefanescu. They were joined last year by Andre Lawson as head of capital markets and three credit analysts; Charlotte Claracco, Ryan Mcgahon and Natalie Taiwo.

Commenting on Providus, Stefanescu said: “The successful pricing of Providus CLO I is a milestone for PDM as the company continues to expand its credit investment strategies from its leading, pan-European direct lending and structured credit platforms.”