Fund Managers

TPG raises first CLO fund

Texas-based private equity firm is understood to have raised $479m for its first CLO.

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TPG has raised its first CLO, according to Bloomberg.

The $479 million (€345.3 million; £288.3 million) TICP CLO 1 reportedly includes a $283.5 million AAA tranche paying LIBOR+160 bps.

A spokesperson for TPG declined to comment.

TPG joins a growing list of large private equity firms such as Apollo Global Management and The Blackstone Group that have diversified into managing CLOs.

The news follows the announcement of COA Summit CLO from 3i Debt Management (3iDM) on Tuesday. The UK based investment group closed its latest US CLO fund at $416 million, bringing its total amount raised since its estbalishment in 2012 to $1.9 billion across four CLOs. 

Its latest offering includes $256 million AAA notes with LIBOR+135 bps coupon.

In the European primary market, four CLOs have priced this year taking the total YTD issuance to €1.6 billion, according to a recent Bank of America Merrill Lynch Global Research report.

ICG’s St Paul’s CLO IV priced last week, following on from Harvest CLO VIII and Carlyle GMS Euro CLO 2014-1, both of which priced the previous week.