Carlyle Group Closes $510M CLO

Private equity firm Carlyle Group said it closed a $510 million collateralized loan obligation, its second new-issue in less than a year, Reuters reported Wednesday. Carlyle’s last new-issue CLO fund closed in July 2011 at $507 million. Collateralized loan obligations are structured investment products that are backed by risky, high-yield debt, and are sold to investors as bonds.

(Reuters) – Private equity firm Carlyle Group said it closed a $510 million collateralized loan obligation, its second new-issue in less than a year.

 

Collateralized loan obligations (CLOs) are structured investment products that are backed by risky, high-yield debt, and are sold to investors as bonds.

 

The new CLO has a reinvestment period of four years, the firm said in a statement.

 

Carlyle’s last new-issue CLO fund closed in July 2011 at $507 million.

 

Earlier the month, the firm, which has filed for an IPO, had reported a 152 percent year-on-year jump in distributable earnings in 2011.