The debt management division of London investment firm 3i has closed a collateralized loan obligation fund with $411 million in commitments.
The CLO is 3i's third U.S. CLO this year. The new CLO, called Jamestown V, has $348 million of investment-grade debt in five classes, plus $63 million in non-investment grade mezzanine and subordinated notes. The CLO has a four-year investment period and a non-call period of two years.
The fund will focus on investing in U.S. senior secured loans that back private equity transactions, corporate acquisitions and other corporate capital-raising efforts in the U.S.
"We have seen significant appetite from investors over the course of 2014 and are pleased to have raised over US$3bn in CLO funds during this period," says Jeremy Ghose, CEO of 3i Debt Management.
3i Debt Management was founded after 3i purchase Mizuho Investment Management in February 2011. The group specializes in managing third-party funds that invest in corporate debt issued by medium and large European and U.S. companies.
The deal comes about a week after the Carlyle Group (Nasdaq: CG) closed a $512 million CLO. In June, Apollo Credit Management priced the largest CLO since the financial crisis, issuing $1.54 billion of notes.
For more on CLOs and the middle market, see Finance Finesse: Mid-Market CLOs Gain Respectability.