Z Capital Credit Partners, Z Capital‘s credit fund management arm, has closed its third collateralized loan obligation at $327.35 million. As a result of this closing, ZCCP’s is now managing about $1.1 billion in total CLO assets.
NEW YORK, July 25, 2019 /PRNewswire/ — Z Capital Credit Partners, L.L.C. (“ZCCP”), the credit fund management arm of Z Capital Group, L.L.C. (“Z Capital”), announced today the closing of a $327.35 million collateralized loan obligation (“CLO”) managed by its affiliate, Z Capital CLO Management, L.L.C. (“Z Capital CLO Management”). The CLO is the third ZCCP has closed, bringing the firm’s total CLO assets under management to approximately $1.1 billion.
The transaction is the second CLO ZCCP has completed in the last seven months, which has significant investment flexibility, including the ability to invest up to 50 percent of its assets in Caa-rated loans. “We believe these CLOs are well-positioned for the late credit cycle environment and allow us to leverage our expertise and track record in both CLO management and stressed and dislocation investing,” said Andrew C. Curtis, Managing Director and Head of ZCCP.
The CLO issued securities rated by Moody’s from Aaa through Ba3. Z Capital CLO Management will retain subordinated notes in an amount sufficient to satisfy EU risk retention rules. Backed primarily by a revolving pool of broadly syndicated senior secured loans, the CLO has a four-year reinvestment period and an eight-year weighted average life test.
“We believe the successful issuance of our second high investment flexibility CLO in 2019 speaks to the strong track record of our principals in CLO and bank loan management as well as our industry-leading credit platform,” said James Zenni, Chief Executive Officer of Z Capital. “We look forward to continuing to issue innovative transactions that can invest opportunistically in what we believe are the late innings of the current credit cycle.”
About Z Capital Credit Partners
ZCCP is the credit fund management arm of Z Capital. ZCCP invests across a range of credit including leveraged loans, private debt, and opportunistic / stressed credit.
About Z Capital Group
Z Capital is a privately held global investment firm having approximately $2.75 billion of assets under management across complementary opportunistic, value-oriented private equity and credit businesses.
Z Capital’s investors are some of the largest and most sophisticated global institutional investors including public and corporate pension funds, university endowments, foundations, sovereign wealth funds, central banks, and insurance companies.
The Z Capital investment strategies are described at www.zcapgroup.net.