Wellington Management, which is one of the world’s largest independent investment management firms and a seasoned collateralized loan obligation (CLO) investor, recently announced the successful final close of its inaugural Wellington CLO Partners Fund I. With $194 million of capital commitments, including $27 million from affiliates, the Fund exceeded its initial $150 million target.
The fund invests primarily in majority equity tranches of Wellington-managed U.S. Broadly Syndicated (BSL) CLOs, utilizing Wellington’s expertise as a CLO investor with $11.6 billion in CLO debt and equity assets under management. As of September 30, 2024, Wellington has deployed three CLOs and plans to issue two to three additional deals annually.
Wellington’s CLO issuance business extends the firm’s established credit platform. Wellington began investing in bank loans and CLO tranches in the early 2000s, continuing to support its team, expertise, research capabilities, and technology investments over more than two decades of experience.
As of December 31, 2024, the firm managed approximately $535 billion in fixed income assets, including $5 billion in dedicated bank loan strategies and $2.8 billion in dedicated CLO debt and equity portfolios for clients. CLO equity is part of Wellington’s multi-year expansion to offer differentiated income and total return solutions that are an extension of the firm’s existing public credit and private equity platforms.
KEY QUOTE:
“We believe CLO equity is a compelling asset class, and we anticipate further opportunities to pursue investment excellence on behalf of LPs in the current and future market environments. With this fund, we are well-positioned to expand our platform and demonstrate our commitment to serving our clients as a CLO manager.”
- Alyssa Irving, CLO Portfolio Manager, Wellington Management
