EU CLO Managers: Seasoned Deals’ Accrued Incentive Fees
Managing CLOs in Europe is a fairly capital-intensive business given the risk-retention requirement. Are EU CLO managers getting paid well for all the work of putting together a CLO and managing it?
The table below shows the list of managers who did well and have accrued incentive fees as of Jun/Jul/Aug payment dates thanks to the outstanding investment performance of their seasoned deals closed from 2013 to 2018. For deals with Aug payment dates, expected Aug payments are included in the incentive fee calculation, and 12 Aug loan prices are used to calculate equity NAV (clean NAV is used).
|Incentive Fees Accrued (EUR million)
|BlackRock Financial Management
|CVC Credit Partners
|HPS Investment Partners
|Intermediate Capital Group
|Prudential Financial (Pramerica)
Source: Intex, LPC, CLO Research
Excluding 2013 deals, the total incentive fees accrued would be EUR34.40 million or around USD 42 million.
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