3i raises €525m CLO

New Volcker-compliant collateralised loan obligation will not invest in bonds

The debt management arm of UK-listed private equity house 3i Group has raised €525 million for a new type of Volcker-compliant collateralised loan obligation, as uncertainty continues about exactly what CLOs are permissible under the new US rules.

The CLO - Harvest CLO IX - has invested in a total of €419.5 million of investment grade debt, according to a statement from 3i. It has invested in a further €105.5 million of non-investment grade mezzanine and subordinated notes - forms of debt which rank lowly in a company's capital structure.

WSJ Logo
Pro Bono or Pro Nono? Law Firms Split on Fulfilling Deals With TrumpExternal link

Pro Bono or Pro Nono? Law Firms Split on Fulfilling Deals With Trump