First CLO Manager in the Nordics
We established the CLO platform in the Summer of 2015, and issued our first CLO in the Summer of 2016. Currently, Accunia has four CLOs under active management following the closing of the fourth in March 2020.
Our competitive advantage is to leverage our size to enable a nimble strategy within the credit markets. This strategy allows us to make swift investment decisions while not being hindered by the need to enter or exit large positions.
Today, the four Accunia CLOs have combined assets under management of €1.6 billion. The CLO platform has grown to be an integral part of Accunia and will continue as the main growth driver in the coming years.
Over the next two years, we endeavour to upsize the four CLOs to €2.0 billion, benefitting from the strong performance of Accunia CLO III and Accunia CLO IV, and with Accunia contributing capital as needed. Accunia acts as both collateral manager and EU risk retention sponsor for all four CLOs. Further plans include expanding the platform with additional CLOs with capital being raised in a new and separate originator structure.
Through value-oriented bottom-up analysis of the underlying collateral, our dedicated team has been instrumental in rejuvenating the platform and delivering stellar results over the last three years. This development should be evident when comparing performance across European CLO managers on key measures.
Accunia will continue to strengthen its ESG investment approach. We have a comprehensive ESG scoring system in place, and we will be implementing ESG investor reporting next year. We fully appreciate the increasing requirements from both market participants and regulators regarding ESG matters, and we assure you that Accunia will continue to stay on top of these developments.
Collateralized Loan Bonds (CLO’s) are standardized bonds issued with collateral in a pool of underlying business loans offered on the institutional loan market.
The selection is made through a process where the underlying pool of loans is analysed with a focus on dispersion. European corporate loans are an asset class with attractive characteristics for the investor. The loans are variable-rate and are typically issued with first priority claim in the company’s assets. The loans therefore rank before unsecured senior debt (bonds), subordinated debt and equity (shares) in the event of bankruptcy.