Crestline Investors Raises $409M For New CLO

May 10 2017 | 8:40pm ET

Alternative credit manager Crestline Investors has closed on a $409.44 million collateralized loan obligation that will be backed by a portfolio of primarily senior-secured leveraged loans. 

The new CLO, named Crestline Denali CLO XV, is the first of the year for Crestline’s Denali Capital unit. It will have a five-year investment period and a two-year non-call period, according to a statement, and is structured to comply with both U.S. and European risk retention requirements.

The new vehicle follows two Crestline Denali CLOs that closed in 2016, raising $361 million and $358.8 million, respectively. 

"The successful closing of CLO XV is proof of the continued growth of our global investor base and further affirms the benefits of the Crestline Investors' platform and our ability to structure transactions that can meet the ongoing regulatory changes of our industry," said David Killion, CEO of Crestline Denali Capital, said in the statement. 

"With risk retention rules now the standard across both the United States and Europe, the success of this transaction shows that we are well positioned to pursue new issuances that meet current regulatory demands," added Douglas Bratton, managing partner & CIO of Crestline.

Natixis Securities America LLC acted as the arranger for the CLO, Crestline said. 

Founded in 1997, Fort Worth, Texas-based Crestline is an alternative investment manager focusing on a broad array of investment solutions including diversified multi-manager hedge fund portfolios, credit and beta/hedging strategies across private credit, specialty lending, CLOs, and opportunistic funds. The company manages around $8.8 billion of assets.

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