MidOcean Raises $304 Million for Debut CLO Equity Fund

  • The offering will invest in the securities’ riskiest tranches
  • Other CLO managers have been launching similar funds
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Alternative asset manager MidOcean Partners has obtained $304 million of capital commitments for its first fund that will invest in the riskiest tranches of bonds backed by leveraged loans.

The firm, which has $11 billion of assets under management and nearly half that in collateralized loan obligations, began raising funds for MidOcean CLO Equity Fund I in 2023. MidOcean raised $136 million by that September, en route to a targeted $300 million, Bloomberg News reportedBloomberg Terminal at the time.