3i closes 525 mln euros for CLO fund

3i Group has raised 525 million euros in the final close of its CLO fund Harvest IX. According to the firm, the fund is the first loan-only Volcker compliant CLO issued in Europe.


3i Group plc (“3i” or “3i Group”), an international investment manager, today confirms the closing of a collateralised loan obligation (“CLO”) fund, Harvest CLO IX (“Harvest IX”). Harvest IX is a €525 million CLO and it is the first loan-only Volcker compliant CLO issued in Europe.

An aggregate of €419.5 million of investment grade debt in four classes and, in addition, €105.5 million of non-investment grade mezzanine and subordinated notes were issued. The vehicle will have a final legal maturity of August 2028. Harvest IX will principally focus on investing in European senior secured loans backing private equity buyouts in Europe.
Jeremy Ghose, Managing Partner and 3i Debt Management CEO said:

“We are pleased to announce that we have closed Harvest IX today, a €525 million CLO fund which is the largest European CLO in the year to date. We have now successfully closed eight CLOs raising c. €3.1bn in just over twenty months, and in 2014 alone we have raised over €1.7 billion through four CLOs. These achievements demonstrate the significant investor appetite and confidence in our platform.”

3i Debt Management has grown substantially since it was established in 2011. At 31 March 2014 3iDM managed 28 funds and had total assets under management of approx. $11 billion, on a pro forma basis.

Harvest VIII
The transaction has a 14-year investment period and a non-call period of 2 years. The capital structure is as follows:
Class (€MM) (Fitch/Moody’s) Coupon
A 304.2 AAA/Aaa E + 1.35%
B 60.8 AA/Aa2 E + 1.90%
C 30.4 A/A2 E + 2.40%
D 24.1 BBB/Baa2 E + 3.00%
E 35.5 BB/Ba2 E + 4.50%
F 15.0 B-/B2 E + 5.25%
SUB 55.0 Not rated

About 3i Group
3i is a leading international investment manager focused on mid-market Private Equity, Infrastructure and Debt Management across Europe, North America and Asia. For further information, please visit: www.3i.com

About 3i Debt Management
3i Debt Management, which was founded through the acquisition of Mizuho Investment Management in February 2011, specialises in the management of third-party funds investing in corporate debt issued by medium and large European and US companies.