Sources say that Pearl Diver Capital has completed the biggest fundraising effort geared towards CLOs this year. It is understood that the firm has raised roughly $270 million for its fifth commingled CLO fund, which will have the ability to invest across the European and US CLO markets.
London-based Pearl Diver is best known as a majority CLO equity investor and sources say that the firm will look to provide risk-retention capital to managers as part of the strategy of its new fun. The new Pearl Diver fund is structured as a private-equity style vehicle – similar to the manager’s other CLO funds – and will have a five-year life cycle.
Pearl Diver was formed in 2008 by Neil Basu and Chandrajit Chakraborty. They lead the firm’s investment activities along with partner Matthew Layton.
There has been growing interest in mezzanine and equity CLO tranches recently. In Europe, Permira Debt Managers is known to have launched a fund. Meanwhile, New York-based Silverview Capital Partners are in the market with a CLO fund which could reach $150 million.