Market updates and sector developments

CVC Credit closes US$800m third CLO equity fund

CVC Credit has held an US$800m final close for its third CLO equity fund, bringing the total amount of capital raised for the strategy to US$1.66bn. The new vehicle is intended to support more than US$10bn of global issuance for the firm’s performing credit platform throughout the course of its deployment period.

The fund, named CVC CLO Equity III, will make equity investments in more than 20 CVC-managed CLOs across the US and Europe. To date, the vehicle has funded 11 transactions worth an aggregate US$4.8bn, of which six deals have taken place since the start of 2023 worth an aggregate of US$3bn.

In other news…

Man Group buys into private credit

London-listed asset management firm Man Group has expanded into private credit with the acquisition of US middle market manager, Varagon Capital Partners. By acquiring Varagon, Man Group intends to capitalise on increasing interest from private equity investors in the US middle market as it strives to diversify its credit offering for clients in the US.

Man Group, which will pay US$183m in cash to exiting shareholders, said the deal will enable Varagon to benefit from its global distribution, giving it access to new investors. The transaction is due to complete in Q3 and is expected to encourage growth in management fees and EPPS within the first year. Varagon will rebrand as Man Varagon, with all investment committee and team members staying on board under present ceo, Walter Owens.