Kartesia prices debut CLO at €460 million on strong demand
What's the deal? European debt manager KartesiaDealroom has a profile for this one. Try Dealroom → has priced its first collateralised loan obligation (CLO), Kartesia CLO I, at €459 million. The vehicle was upsized from an initial €400 million target after strong investor demand, with its AAA tranche priced at a spread of +129bp and no arranger participation.
Why now? The debut CLO follows the launch of Kartesia's Loan Management (KLM) strategy in May, which has since raised more than €140 million in equity capital. It is led by Michael Htun, head of CLOs and structured credit, and backed by New York Life Investment ManagementDealroom has a profile for this one. Try Dealroom → and CandriamDealroom has a profile for this one. Try Dealroom →.
What's the endgame? Kartesia wants to establish itself as a provider of structured financing across European credit. "The pricing of this first CLO is an important step for the KLM strategy and Kartesia as a whole," said Julien Rigon, a partner at the firm.
New York Life and Candriam earlier this year increased their stake in Kartesia from 33% to 80%, deepening their backing as the platform expands.
The signal: "This upsized transaction is evidence of the strong appetite from investors for European CLOs," Htun said. The pricing lands amid busy activity in the segment — M&G recently upsized its fifth Margay CLO to €457 million, and PolusDealroom has a profile for this one. Try Dealroom → raised €400 million for its latest deal — signalling a growing market that new entrants are racing to tap.
Read more: alternativecreditinvestor.com
Image credit: Sherwin Torres
