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Cloud 9fin

Fundamentals of CLO fundraising

Oct 9, 2024
27:47
Snipd AI
Jamil Nathoo from MidOcean Partners, an expert in CLO business development, shares intriguing insights into the world of Collateralized Loan Obligation fundraising. He discusses the emergence of CLO captive equity funds and their impact on issuance control. Dive into the growing CLO appetite in the Middle East and South America, along with the unique challenges these regions present. Nathoo also elaborates on the importance of local partnerships, investor trust, and the evolving dynamics of fundraising in Asia, particularly among family offices.
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Podcast summary created with Snipd AI

Quick takeaways

  • CLO fundraising dynamics are influenced by evolving investor preferences, with many favoring captive equity funds for their lower fees and established relationships with managers.
  • Emerging markets like the Middle East and South America present unique challenges for CLO managers, requiring tailored strategies to meet local investment needs.

Deep dives

Types of CLO Equity Funds

CLO equity funds come in two main types: captive equity funds and third-party equity funds. Captive equity funds are usually managed by a single manager who has control over the investments, allowing for a more concentrated strategy. In contrast, third-party equity funds involve a managed pool of various managers, providing diversification but often at the cost of higher fees due to potential double fees. Understanding the differences between these structures helps investors choose the right fit based on their investment strategy and comfort level.

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