GoldenTree Asset Management (a global asset management firm with over $54 billion in assets under management) announced closing $1.3 billion in commitments on its third CLO strategy (GLM III). GLM III continues the GoldenTree Loan Management (GLM) program that started in 2016, bringing aggregate commitments across the entire GLM program to over $2.625 billion.
GLM III secured commitments of $1.3 billion, surpassing its target of $1 billion and reaching the fund’s effective hard cap. This was from a global investor base that includes public and corporate pensions, sovereign funds, foundations, insurance companies, family offices and RIAs across the US, Europe, Asia and the Middle East.
GoldenTree launched the GLM program to enhance the firm’s top-quartile track record in CLO equity by taking a unique approach to CLO execution, optimizing the strategy’s assets and liabilities. And GLM’s approach has proven successful, with the strategy’s most recent vintage GLM II. This has delivered a net IRR since the inception of 18% as of February 29, 2024, and annual distributions of 17% annually. GLM III issued its first CLO, called GLM US CLO 19, in January 2024, which secured AAA spreads at the time, representing the tightest AAA spread in the market since May 2022.
KEY QUOTES:
“The GLM program has enabled a broader universe of investors to access the attractive yield and total return profile of GoldenTree’s CLO equity. Demand for our CLO equity has increased as investors recognize the value it can create within their portfolio. GoldenTree’s partners and employees have also personally made commitments to the Fund of $50 million, demonstrating the firm’s high conviction in the strategy and strong alignment with investor interests.”
– Kathy Sutherland, GoldenTree’s CEO
“GoldenTree issued its first CBO in 2000 and our active and deliberate approach to the management of assets within our CLOs has allowed us to consistently – over more than two decades – deliver top-quartile CLO equity performance. GLM’s innovative structure further enhances our ability to deliver differentiated results and we appreciate the strong reception of the strategy by investors.”
– Steve Tananbaum, GoldenTree’s Founder, Managing Partner, and Chief Investment Officer
“GLM’s unique structure is designed to optimize returns in both volatile and benign environments. Unlike many of our peers, we strategically ramp and issue CLOs to maximize returns, not just achieve AUM targets. Furthermore, the breadth and depth of expertise at GoldenTree – our seasoned investment team is composed of almost 100 professionals with approximately 15 years of average experience – represents a key competitive advantage. A major component of our success has been our strong security selection and active management of our loan portfolios.”
– Lee Kruter, Partner and Head of Performing Credit
