JPMorgan Hedge Fund Quickly Exits CLO Warehouse Financing
- Roumani’s $1 billion fund provided capital for CLO warehouses
- No immediate sign of impact on CLO issuance in the U.S. market
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Palm Lane Credit Opportunities Fund, the hedge fund being liquidated by JPMorgan Asset Management, has already traded out of most of the financing it provided to collateralized loan obligations managers, according to people familiar with the matter, who asked not to be identified because the information is private.
The hedge fund was led by Fahad Roumani. Warehouse capital to CLO managers accounted for 41 percent of the net asset value of the $1 billion fund, according to an internal April newsletter seen by Bloomberg News, with pre-pricing capital accounting for 22.9 percent of NAV and post-pricing capital for 18.4 percent.