CVC Credit raises fourth CLO equity vehicle with $1 billion in commitments

CVC Credit, the global Credit management platform of CVC plc, is pleased to announce the final close of CVC CLO Equity IV with $1 billion of commitments. Across its period of deployment, this equity fund is intended to support approximately $15 billion of global CLO issuance for CVC Credit’s Liquid Credit platform.

CVC CLO Equity IV is CVC Credit’s fourth dedicated CLO equity vehicle and represents a 25% increase over CVC CLO Equity III. The vehicle will be used to make equity investments in CVC-managed CLOs issued in the US and Europe. In aggregate, CVC Credit has now raised approximately $2.7 billion of capital across its four CLO equity funds. 

This capital strengthens CVC’s position as a scaled market leader, enabling us to continue building diversified and resilient portfolios across all market conditions, while actively managing capital structures to drive equity returns for our investors. Since activation in Q2 last year CVC CLO Equity IV has enabled us to price five new CLO vehicles with an aggregate value of over $2.5 billion. CLO Equity IV is expected to support more than 30 new CLO issuances for CVC Credit's CLO management platform. 

Rob Lucas, CEO at CVC said: “This successful fundraising, ahead of target and above the previous fund, is indicative of our continued fundraising momentum across the group. CVC Credit has experienced strong growth, underpinned by our CLO business, which over the past twenty years has developed into one of the world’s leading CLO platforms.
 
“This also follows our recent agreement to acquire Marathon Asset Management, which will further broaden our product offering and enhance our ability to drive continued growth in our Credit assets under management in the future.”

Andrew Davies, a Managing Partner and Head of Credit at CVC, said: “The growth of our global CLO platform has been driven by long-term performance, which is underpinned by disciplined underwriting, building robust and diversified portfolios, actively managing the collateral and leveraging our differentiated market access. 
 
“CVC’s CLO equity funds continue to be highly effective vehicles for investing in the global leverage loan asset class. They also enable the team to be flexible in their execution through any market environment, enhanced by active management of the capital structures to drive attractive returns.
 
“We are extremely grateful to our investors for their continued engagement and support, which has been fundamental to our success. We remain focused on building on this success and continuing to deliver strong, consistent performance for our investors.”

CVC Credit manages fee-paying assets of €45 billon across its Liquid Credit and Private Credit businesses.