4How are CLOs managed?

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The manager of a CLO chooses which assets to buy and decides when to sell assets based on its view of their credit quality and the market.

On average, CLO managers have seven CLOs under management, usually alongside other funds, though some have more than 30.

CLO managers usually receive a senior fee, paid regardless of the performance of the deal, a junior fee, which is paid provided that there is enough money left over after paying note interest, and an incentive fee linked to the return received by equity investors.end

 

 

CLO manager ranking

Global CLO manager ranking by principal liabilities (debt + equity) as of 30-Jun-2015
Total (USD) US CLOs Euro CLOs
Rank Previous Manager ($bn) CLOs ($bn) CLOs (€bn) CLOs
1 1 GSO Capital Partners 21.4 49 12.37 24 8.1 25
2 2 Carlyle Group 19.55 43 13.59 28 5.34 15
3 3 Credit Suisse Asset Mgt 16.31 30 14.26 24 1.84 6
4 4 Apollo Global Mgt 14.84 23 13.58 20 1.13 3
5 5 Ares Mgt 13.98 32 11.5 25 2.22 7
6 6 CIFC Asset Mgt 13.06 34 13.14 34 0 0
7 8 Alcentra 11.91 31 4.95 13 6.24 18
8 7 Highland Capital Mgt 11.89 26 11.89 26 0 0
9 9 KKR Financial Advisors 11.3 25 6.42 11 4.82 14
10 12 CVC Credit Partners 10.75 26 8.29 21 2.2 5
11 10 Prudential Investment Mgt (Pramerica) 10.5 24 7.99 17 2.25 7
12 11 3i Debt Mgt 9.84 26 4.66 11 4.65 15
13 13 Babson Capital Mgt 9.47 25 6.9 17 2.31 8
14 15 Octagon Credit Investors 8.47 16 8.47 16 0 0
15 14 Voya Alternative Asset Mgt 8.09 19 8.09 19 0 0
16 16 Oak Hill Advisors 8.03 16 6.81 13 1.1 3
17 17 MJX Asset Mgt 7.46 14 7.46 14 0 0
18 18 Fortress Investment Group 7.36 11 7.36 11 0 0
19 24 Golub Capital 7.14 17 7.14 17 0 0
20 23 Sankaty Advisors 6.84 15 5.71 12 0.96 3
21 19 Invesco 6.62 17 6.2 15 0.38 2
22 20 Columbia Mgt 6.61 13 6.61 13 0 0
23 26 Halcyon Loan Mgt 6.48 17 5 12 1.33 5
24 25 Och Ziff 6.48 11 6.48 11 0 0
25 21 Symphony Asset Mgt 6.45 12 6.45 12 0 0
26 22 BlueMountain Capital Mgt 6.44 15 6.44 15 0 0
27 28 GoldenTree Asset Mgt 6.3 11 5.88 10 0.38 1
28 31 Guggenheim Partners 5.89 11 5.83 10 0.06 1
29 30 PineBridge Investments 5.56 13 4.23 9 1.19 4
30 27 LCM Asset Mgt 5.47 12 5.47 12 0 0
31 29 Oaktree Capital Mgt 5.42 10 4.58 8 0.75 2
32 32 Intermediate Capital Group 5.41 17 1.61 4 3.41 13
33 36 BlackRock 4.58 10 4.58 10 0 0
34 34 Sound Point Capital Mgt 4.32 8 4.32 8 0 0
35 33 Neuberger Berman 4.31 12 3.89 10 0.37 2
36 38 Onex Credit Partners 4.24 7 4.24 7 0 0
37 39 KVK Credit Strategies 4.08 8 4.08 8 0 0
38 35 Silvermine Capital Mgt 4.01 9 4.01 9 0 0
39 37 Black Diamond Capital Mgt 3.81 11 3.53 9 0.25 2
40 46 American Money Mgt 3.57 8 3.57 8 0 0
41 41 KCAP Financial 3.49 10 3.49 10 0 0
42 48 Apex Credit Partners 3.42 8 3.42 8 0 0
43 43 Crescent Capital Group 3.33 9 3.33 9 0 0
44 44 Angelo Gordon 3.16 7 3.16 7 0 0
45 51 Seix Advisors 3.13 8 3.13 8 0 0
46 53 Shenkman Capital Mgt 3.12 7 3.12 7 0 0
47 45 THL Credit Advisors 3.1 6 3.1 6 0 0
48 54 American Capital CLO Mgt 3.07 7 3.1 7 0 0
49 42 Napier Park Global Capital 3.07 8 3.07 8 0 0
50 47 New York Life 3.03 8 3.03 8 0 0
51 49 NewStar Financial 2.73 7 2.73 7 0 0
52 50 Anchorage Capital 2.69 5 2.69 5 0 0
53 58 HIG WhiteHorse 2.69 8 2.69 8 0 0
54 52 Brigade Capital Mgt 2.53 6 2.53 6 0 0
55 55 Benefit Street Partners 2.51 5 2.51 5 0 0
56 64 Triumph Capital Advisors 2.38 6 2.38 6 0 0
57 56 Eaton Vance 2.37 6 1.62 4 0.67 2
58 57 Kingsland Capital Mgt 2.26 6 2.26 6 0 0
59 59 Highbridge Principal Strategies 2.17 5 2.17 5 0 0
60 68 Axa Investment Managers 2.16 7 1.19 3 0.87 4
61 62 HillMark Capital Mgt/NewMark Capital 1.74 4 1.74 4 0 0
62 36 Telos Asset Mgt 1.69 5 1.69 5 0 0
63 64 Cerberus Capital Mgt 1.67 4 1.67 4 0 0
64 80 Highbridge Principal Strategies 1.65 4 1.65 4 0 0

Source: CLO-i.

 

 

 

Turn to the print version of the CLO guide to find out:

Why the manager has an incentive to ramp up the CLO quickly

What are typical CLO management fees?

In what circumstances managers can be replaced and the process for appointing a successor manager

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