Tetragon has closed its third credit income fund at about $430 million. TCI II focuses on CLO investments.
LONDON, March 13, 2019 /PRNewswire/ — Tetragon Credit Income today announces that its February 2019 final close of Tetragon Credit Income III L.P. (TCI III) brings total commitments to approximately $430 million. TCI III is a private equity vehicle which focuses on CLO investments, including majority stakes in CLO equity tranches. Tetragon Credit Income’s other most recent CLO investment vehicle, Tetragon Credit Income II L.P. (TCI II), raised just under $350 million through its final close in 2017.
“The CLO market continues to be a dynamic space presenting many interesting investment opportunities, both near and long-term and across various credit and economic cycles,” said Scott Snell, Portfolio Manager for Tetragon Credit Income. “Today’s announcement marks an important milestone for the Tetragon Credit Income business, as TCI III is a new, dedicated pool of capital that will enable us to continue to make control equity investments in the primary market and to play an active role in the structuring of these investments.”
Tetragon Credit Income is one of the asset management businesses that comprise TFG Asset Management, the diversified alternative asset management business of Tetragon Financial Group Limited. Tetragon Credit Income invests in both externally-managed CLOs and in CLOs managed by TFG Asset Management’s LCM Asset Management. Assets under management for TFG Asset Management as of 31 December 2018 totaled approximately $28.1 billion.
Stephen Prince, Head of TFG Asset Management, added: “Our aim is to partner with leading alternative asset managers and provide a shared strategic direction and operational support, with a view to them delivering attractive returns to their investors, as well as to Tetragon which looks to invest alongside them. Today’s announcement underscores the success of the approach.”
Since 2005, Tetragon, directly and through Tetragon Credit Income private equity vehicles, has invested over $2.3 billion in CLO equity, across 101 CLOs managed by 32 managers. Snell added: “Since inception, Tetragon has been a leader in taking majority equity stakes in CLO transactions and forging deep relationships with CLO managers to deliver strong risk-adjusted returns for its investors. Tetragon Credit Income is seeking to continue this effort.”
Tetragon is a closed-ended investment company that invests in a broad range of assets, including bank loans, real estate, equities, credit, convertible bonds, private equity, infrastructure and TFG Asset Management, a diversified alternative asset management business. Where appropriate, through TFG Asset Management, Tetragon seeks to own all, or a portion, of asset management companies with which it invests in order to enhance the returns achieved on its capital. Tetragon’s investment objective is to generate distributable income and capital appreciation. It aims to provide stable returns to investors across various credit, equity, interest rate, inflation and real estate cycles. The company is traded on Euronext in Amsterdam N.V. and on the Specialist Fund Segment of the main market of the London Stock Exchange. For more information please visit the company’s website at www.tetragoninv.com.