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.
In the latest edition of our CLO Insights series, we examine what it actually takes to set up and grow a CLO platform: from meeting investor diligence standards to reaching the critical mass at which a platform becomes economically self-sustaining.
For new managers, delivering consistent performance from the outset and building a track record is key to attracting new investors over time.
What this article covers
The piece addresses the lifecycle of CLO platform set up and development, including:
- Investor diligence criteria: What institutional investors examine before committing to a new CLO manager, from team experience and investment process to regulatory approval and access to collateral
- Risk retention requirements: How EU and UK securitisation regulations require CLO managers to retain a 5% economic interest, and what this means for capital planning
- Warehouse financing: The role of subordinated warehouse debt in the ramp-up phase before CLO issuance
- Scale benefits: How a growing CLO platform delivers improved liability pricing, broader collateral access, and a stronger counterparty position with arrangers
This article is part of Pemberton’s ongoing CLO Insights series, providing analysis on CLO structure, market dynamics, and developments relevant to CLO managers and allocators.
Download Setting Up and Growing a CLO Platform
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