New issue CLOs turn to fully syndicated equity

By Paola Aurisicchio
29 Apr 2021

New issue CLOs are increasingly selling equity to multiple buyers, leaving no single investor with a majority position — signalling an end to the difficulties of last year, which saw managers without their own equity or committed partners struggle to come to market.

Even in deals where minority equity is placed in the market, larger equity investors often prefer to take a majority stake, giving them full control of whether to reset, refinance or call deals. However, fully syndicated equity tranches with no overall control have recently resurfaced.

CBAM and KKR are ...

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