Wellfleet Credit Partners has closed a $406.1 million collateralized loan obligation fund (CLO), called Wellfleet CLO 2016-2. The fund, with commitments from new and existing investors, raised nearly $47.6 million more than its predecessor.
Wellfleet CLO 2016-2 is the third CLO for Wellfleet, the performing credit business of private equity firm Littlejohn & Co. The CLO will be backed by senior secured loans. The fund’s predecessor, Wellfleet CLO 2016-1, closed at $358.5 million in April 2016. With the new loan fund, the credit business now manages more than $1.1 billion in aggregate funds.
Littlejohn invests in middle-market companies seeking a change in capital structure, strategy, operations or growth. The Greenwich, Connecticut-based firm launched Wellfleet in 2015 and now has more than $4 billion in assets under management. “Given the market environment, we are finding that our various strategies have been highly complementary,” says Littlejohn partner Richard Maybaum about Wellfleet’s investment strategies.
Littlejohn isn’t the only investment advisory firm raising loan funds, an area that is not yet as crowded as it is among private equity firms. Recently, Monroe Capital LLC closed a $800 million credit fund; The Carlyle Group LP (Nasdaq: CG) raised a new CLO valued at nearly $403 million; Chicago-based NXT Capital LLC closing its fourth debt fund at $900 million; and Audax Group’s raising nearly $1.2 billion in capital for the firm’s fourth mezzanine fund. Citigroup Global Markets (NYSE: C) served as the arranger for the new CLO and Dechert LLP acted as legal counsel to Wellfleet.