Neuberger closes CLO risk retention vehicle with $450 million capital

By Susanna Moon

Chicago, July 27 – Neuberger Berman said it closed its CLO risk retention vehicle, Neuberger Berman Loan Advisers, with about $450 million of committed capital.

Through Neuberger Berman Loan Advisers, Neuberger Berman has partnered with its investors to provide strategic capital to its CLO management business in order to comply with U.S. and E.U. CLO risk retention rules, according to a company announcement.

Neuberger Berman and predecessor firms have served as collateral manager on 24 CLOs since 2004, the release added.

“We are very excited to be able to partner with a number of our key investors on our CLO management business going forward,” Brad Tank, CIO of fixed income, said in the press release. “Our CLO management platform is an integral part of our $42 billion Non-Investment Grade Credit business.”

“Neuberger Berman Loan Advisers allows us to continue to be an active CLO issuer over the next several years while at the same time providing our investors an opportunity to invest in the platform alongside us. We believe that the combination of our non-investment grade credit team’s experience and the vehicle’s strategic capital will position our CLO management business well for the future.”

Neuberger Berman’s fixed-income business has $123 billion in assets under management across global investment grade, global non-investment grade, emerging markets, opportunistic/unconstrained and municipals, the release noted.

Neuberger Berman is a private, independent, employee-owned investment manager based in New York.

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