- US expansion follows strong track record in European CLO market
- Dedicated US CLO team to follow same, established investment approach as in Europe
- Global credit AuM for Permira to reach approximately €17bn
Menlo Park, California – 25 November 2024 - Permira, the global investment firm, today announces the successful pricing of MENLO CLO I ("Menlo I"), a $430.6 million upsized collateralised loan obligation ("CLO") transaction in the United States. This is the first CLO priced by Permira Credit in the US market, signalling a natural extension of the firm’s liquid credit platform following the growth of its European CLO management business, Providus, since 2018.
The launch of the Menlo CLO management business follows Permira’s longstanding commitment to measured growth. Having built a strong track record in Europe since 2007, both as a CLO manager and a CLO investor, Permira believes there is now a significant opportunity to take Permira Credit’s liquid credit platform to the US, the largest credit market in the world.
The Menlo CLO management business will follow the same established investment strategy that has allowed Permira Credit’s European CLO management business to deliver strong and consistent performance since 2018 – a credit-led approach; defensive portfolio construction with a focus on resilient sectors such as technology, healthcare and business services; active portfolio management; and responsible investing.
The US business will benefit from the global scale, experience and networks of Permira, spanning 16 offices globally, and will be run by a dedicated team of CLO specialists. Ariadna Stefanescu, who joined Permira in 2007, leads the group and is support by an experienced team, including Jared Adler (Portfolio Manager), Doug Schwartz (CLO Structurer), Dries De Craemer, James Kang, William O’Connell (Credit Analysts) and Taniya Heyn (CLO Operations).
Ariadna Stefanescu, Co-Head of Permira Credit and Head of Liquid Credit, said: “Our first CLO in the US is a significant milestone for the credit platform at Permira and is something we have been targeting for some time. There is a huge opportunity in the US credit market and we are looking forward to bringing to bear our investment strategy that delivered strong, risk-adjusted returns for investors in Europe. I am proud of what the firm has been able to achieve so far, as well as grateful to our investors who have continued to back us with this move. We’re looking forward to what’s to come.”
Permira’s credit platform was established in 2008 and today manages approximately €17bn of AuM. It is currently investing its fifth Direct Lending vintage, which closed on €4.5bn of investable capital in 2023. The platform’s CLO Management business has grown successfully since 2007, today managing €3.9bn of AuM in Europe and $430.6m in the US, upon closing of Menlo I. The firm’s European CLO management platform, Providus, is a well-established and active player in Europe with 10 CLOs issued since 2018, and five transactions priced this year. It was also the first European CLO manager to include ESG negative screening language in its CLO documentation.
The pricing is subject to customary closing conditions. The collateral manager of Menlo I is Permira US CLO Manager LLC.
