MidOcean Partners has closed its inaugural MidOcean CLO Equity Fund I with $304m in capital commitments, surpassing its $300m target, having received support from both existing clients and new investors.
According to Business Wire, The New York-based alternative asset manager, specialising in middle-market private equity, alternative credit, and structured capital, aims to generate attractive risk-adjusted returns by investing in CLO equity.
Led by CLO industry veterans Joseph Rotondo and Jamil Nathoo, the team employs a defensive strategy focused on creating a diversified, downside-protected portfolio of senior secured leveraged loans, primarily targeting larger and more liquid syndicated loans.
The Fund has deployed approximately 55% of its capital across seven MidOcean CLOs, representing $2.8bn in AUM, and bringing the firm’s total CLO AUM to nearly $5bn.
MidOcean has been active in the CLO market for over a decade, leading the issuance of seven new CLOs and refinancing five existing CLOs since 2022.
The fund’s successful close complements the firm’s strong momentum, following the $765m raise for MidOcean Tactical Credit III.
