CVC Reaps 146% Return From Liz Truss-Crisis Era Private CLO

A bet that leveraged loan markets would rebound from the volatility that followed former UK Prime Minister Liz Truss’s disastrous mini-budget in 2022 has bagged a 146% return for a CVC Credit Partners’ collateralized loan obligation.

The proceeds stem from the €400 million ($433 million) private Cordatus Opportunity Loan Fund that the firm completed raising in January 2023 to snap up discounted debt, according to Guillaume Tarneaud, a partner in the firm’s credit management business. The first tranche of loans were purchased at an average 91.9% of face value, he said.