One Credit Market Defies Deal Slowdown to Head for Record Year of M&A
- Boom in U.S. CLO M&A fueled by search for yield, rate hedge
- AUM growth key to performance, but expenses bite smaller shops
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There’s a part of the global credit market defying war, inflation and recessionary fears to forge a new record for mergers and acquisitions. And its dealmakers don’t seem done yet.
The buying frenzy is over collateralized loan obligations, the $1 trillion market that purchases leveraged loans and repackages them into bonds of varying risks. Carlyle Group Inc. nabbed Todd Boehly’s CBAM Partners last month to become the biggest manager of CLOs, while Blue Owl Capital Inc. purchased Wellfleet Credit Partners in April to jump start an entry into the space.