Investment bank Jefferies Group LLC and hedge fund Davidson Kempner Capital Management LP have committed to a $160 million investment in the upcoming CLO equity of Par-Four Investment Management, according sources familiar with the matter.
The investment is expected to support Par-Four's warehousing activity and issue up to an additional $1.8 billion in CLOs, those sources have said.
Par-Four Investment Management has so far issued four CLO 2.0s for a total of $1.7 billion, the most recent issue being the Tralee CLO V at the end of 2018. The Woodcliff Lake, N.J.–based firm was founded in 2003 and launched its structured credit strategy in 2007 when it also issued its first CLO.
Davidson Kempner Capital Management currently manages more than $30 billion in assets. Both Davidson Kempner and Jefferies are currently active investors across all parts of the CLO capital structure. – Andrew Park
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