(Bloomberg) — Fortress Investment Group is weighing its first collateralized loan obligation deal in Europe as the distressed-debt specialist owned by SoftBank Group Corp. seeks to tap growing appetite for the asset class, according to people familiar with the matter.
Rahul Ahuja, promoted to co-head of European credit in November, may oversee the firm’s CLO platform in the region and a deal could come as soon as this year, said the people who asked not to be identified because they’re not authorized to comment on the matter.
A spokesperson for Fortress declined to comment. The New York-based firm already manages CLOs in the U.S.
Europe’s CLO sales surged to nearly 39 billion euros ($43.7 billion) in 2021, the highest yearly volume seen since the global financial crisis.
With central banks turning more hawkish to rein in inflation, the appeal of floating-rate assets such as CLOs looks set to keep growing. Another 60 to 70 new transactions are currently in the works, according to investors and bankers.
If it opts to press ahead with the deal, the firm would join nearly 20 managers that have entered Europe’s CLO market during the past three years, according to data compiled by Bloomberg. Last year’s newcomers include Neuberger Berman, Fidelity International and U.S.-based credit investment manager Nassau Corporate Credit LLC.
Meanwhile, Michael Hintze’s CQS hedge fund is mulling a green CLO in Europe, Bloomberg reported earlier this month.
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