Rob Reynolds, md and head of CLOs at Pemberton Asset Management, talks to SCI about his new role and his vision for the company

Q: You joined Pemberton earlier this month (SCI 1 March). Can you provide an overview of the firm and the new CLO platform?
A: Pemberton was founded in 2013 by our managing partner Symon Drake-Brockman, who is still leading the business. At the time, the fallout from the financial crisis in 2008 led banks to prioritise investment-grade loans and shrink their balance sheets by moving away from quality companies operating in the middle-market.

Pemberton stepped in to fill this important gap left by corporate banks across Europe. Pemberton has since expanded to offer a range of alternative credit strategies, including working capital finance and a risk-sharing strategy.

The team got in touch with me last year asking if I’d like to support them on setting up a CLO platform. I’ve worked in the sector for more than 15 years and saw it as a natural fit for Pemberton – the company has all of the right systems, governance and investor relationships in place. CLOs are a growing market; they bring a slightly more liquid product into the Pemberton offering and help address growing investor demand for more choice.

Q: Talk us through what your new role will entail.
A: I’ll be leading on all aspects of setting up and running the CLO platform. One of my first priorities is to grow the CLO team here at Pemberton and we’re already working on recruitment. Once we have regulatory approval, the plan is to open a warehouse, start building the assets and then launch a CLO.

Q: How has the pandemic impacted the CLO sector?
A: The CLO sector was remarkably resilient during the pandemic. We’re beginning to return to normal life now, but there remains a degree of volatility in the market, due to the impact of rising energy prices and the ongoing war in Ukraine. Naturally, it is vital to thoroughly analyse and understand any credit dimensions to this.

Q: In terms of moving forward, how would you describe Pemberton's vision for 2022?
A: The significant funding gap, which has grown in the wake of the GFC, has led to a significant and increasingly varied opportunity for us to support businesses with credit solutions. Our focus is to continue delivering leading alternative credit strategies for investors and borrowers.

We’ve already announced our risk-sharing strategy and this new CLO strategy over the past few months – so our vision this year is to establish these strategies. We continue to see strong demand from investors for our innovative strategies and the alignment between firms and investors on making sustainability a priority is greater than ever, an area where Pemberton is particularly strong and focused on.

Angela Sharda