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NEW YORK Aug 10 Private equity firm Carlyle
Group CYL.UL said on Wednesday it has bought the management
contracts of a $500 million CLO, has created a $507 million
CLO, and sees more opportunity to expand further in that area.
Collateralized loan obligations (CLOs) are packages of
leveraged loans that are sold to investors as bonds.
[ID:nN03111661] A resurgence in the U.S. CLO market -- hard hit
by the credit crisis -- had been seen earlier this year.
Carlyle said it recently closed its first newly issued CLO
since 2008, a $507 million CLO called Carlyle Global Market
Strategies 2011-1. It priced the CLO in July, RLPC reported.
It also recently bought the management contract of a $500
million CLO from The Foothill Group Inc.
Carlyle said its structured credit team now advises 31
collateral loan funds in the United States and Europe totaling
$12.7 billion in assets under management. It said it sees
continued opportunity for acquisitions and in the new issue
market for CLOs.
Rival Apollo Global Management (APO.N) in July agreed to a
deal to buy Charlotte, North Carolina-based Gulf Stream Asset
Management, which manages 10 collateralized loan obligations.
Apollo said on Tuesday that the area is "clearly
consolidating" and that it wants to be a consolidator in the
CLO and senior loan space.
(Editing by Maureen Bavdek and Gerald E. McCormick)