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NEW YORK, Aug 10 (Reuters) - 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. [ID:nN15285557]
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. [ID:nRLP16767a]
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)