Pemberton’s Collateralised Loan Obligations (CLOs) strategy invests in publicly rated, broadly syndicated leveraged loans, which are typically used to fund sponsor driven or corporate M&A activity. Such loans are originated by major arranging banks and held by various market participants. As a result, they are also liquid with an active secondary market. CLOs have proven to be resilient investment vehicles through multiple cycles delivering attractive risk adjusted returns to note holders.
¹As of October 2025. Assets under management are defined as committed capital since inception. Excludes warehoused exposure associated with future CLO issuance.
Pemberton’s CLO investment philosophy is predicated on the construction of highly diversified credit portfolios utilising a 3D approach focusing on fundamental analysis techniques and adopting a relative value approach for portfolio optimisation purposes.
Pemberton launched its Indigo CLO Platform in 2023 and has since successfully issued 4 CLOs in the series bringing AUM to €1.6 billion.
CLOs complement Pemberton’s other investment strategies by offering investors access to a credit product designed to suit their investment and allocation needs.
Consistent with Pemberton’s ethical principles, Pemberton’s CLOs incorporate the latest thinking in sustainable investment policies and are built into investment decision making.
Introduction CLOs are floating rate products, which means that both assets and liabilities are linked to prevailing market rates (benchmark interest rates). This is one of the matching principles that underpins the CLO model (see CLO Insights – CLOs for All Seasons) and serves to reduce duration risk. This feature also has an incidental role […]
Most collateralised loan obligation (CLO) metrics, including Portfolio Profile Tests, Collateral Quality Tests and CLO Coverage Tests, are calculated using the traded balance. Cash flow available to pay noteholders, however, depends solely on the settled balance: the principal and interest that have actually been received. Managing the gap between the two is a core part […]
Building a CLO platform takes more than capital and infrastructure. It requires deep credit expertise and an investment proposition credible enough to withstand institutional due diligence across multiple market cycles.
CLO Documentation can seem daunting at first, but every document exists for a reason. In our latest CLO Insights Series, produced in association with Weil, Gotshal & Manges (London) LLP, we walk through the full suite of documents that govern a CLO: what they contain, how they fit together, and why they matter to investors.
Risk Retention, sometimes referred to as ‘skin in the game’, is an important requirement serving to align the interests of investors and other parties in a CLO transaction. In our latest CLO Insights Series, we take a deep dive into the Risk Retention Rules, examining how they apply under both EU and UK securitisation regulations […]
How do CLO managers balance the complexity of over 100 leveraged loans while protecting investor value? In our latest CLO Insights Series, we examine the importance of portfolio optimisation throughout a CLO’s lifecycle, from the initial ramp-up through active management and beyond the reinvestment period. The article explores the constraints CLO managers work within, from eligibility criteria to collateral quality tests to coverage ratios, and how these protect noteholders while giving managers scope to enhance portfolio resilience.
Who’s who in CLOs? Issuing a CLO involves multi-disciplinary teams of specialists all working together. The number of parties involved in the creation of a CLO can be bewildering. In our latest CLO Insights Series, we break down the roles and responsibilities of each participant in a typical CLO structure. From the Collateral Manager and […]
How do CLO managers balance risk and return while maintaining portfolio quality standards? In the latest article in our CLO Insights Series, produced in association with Weil, Gotshal & Manges (London) LLP, we provide an analysis of Collateral Quality Tests and the matrices that guide CLO portfolio management. The piece breaks down five essential quality […]
What is a CLO waterfall and what does it do? The “waterfall” is one of the more colourful phrases used by the CLO community. Formally called “Priorities of Payments”, this mechanism controls how interest and principal proceeds flow from CLO assets to investors. Our latest CLO Insights breaks down exactly how these waterfalls operate, and […]
CLO structures incorporate mechanisms designed to protect investors across varying credit environments. Historical performance data from Standard & Poor’s confirms negligible defaults across multiple stress periods, from the 2008-09 crisis through the recent inflation cycle.
The Standard of Care is central to CLO management. In the second edition of our CLO Insights Series, we examine its practical impact on managers’ responsibilities. The principle is straightforward but important: CLO Managers must manage capital with the same level of skill and attention they apply to comparable assets across their business. Reasonable care […]
Par value is the cornerstone of CLO structures, shaping investor protections and serving as a key measure of a manager’s skill. The first edition of our CLO Insights Series explores the central role of par value with a focus on: For institutional investors, understanding par value dynamics is essential for CLO evaluation and manager selection. […]
Managing Director, Head of CLOs
Executive Director, CLO
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