INSIGHTS

Pearl Diver Capital closes PDC Opportunities IV at $200M

Pearl Diver Capital has held the fourth and final close of its CLO investment fund, PDC Opportunities IV, at $200 million, according to market sources. The total is $50 million more than anticipated, and comes from a mix of investors including private equity firms, family offices, and institutions.

The fund has a 12-month investment window, with roughly six months remaining to invest the proceeds.

With good visibility on further investments coming in, the firm will look to launch a new fund in time.

PDC Opportunities IV can invest in both U.S. and European primary CLOs, and can also offer warehouses. Historically the manager has invested towards the bottom end of CLO structures, but it can invest across the structure depending on where value lies.

Given U.S. CLO equity returns are currently better than European – on the back of greater leverage in U.S. CLOs, as well as a deeper loan market, and better trading ability in the underlying loan asset class – the firm is more heavily invested in the U.S. market.

Pearl Diver Capital was formed in 2008 to provide institutional investors with specialized investment expertise in the securitized products market, and manages roughly $400 million across its fund strategies.

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