Investment banking and alternative asset management firm JMP Group LLC closed on a $407.8 million collateralized loan obligation issued by two newly formed special purpose vehicles and backed by a diversified portfolio of broadly syndicated leveraged loans.

JMP Credit Advisors CLO V Ltd. issued the notes offered in the transaction and were co-issued in part by JMP Credit Advisors CLO V LLC.

A wholly owned unit of JMP Group purchased $2.5 million of the senior subordinated notes and 100% of the junior subordinated notes, which are not rated.

JMP Group plans to consolidate the loan investment portfolio and anticipates to account for the deal on its balance sheet as non-recourse debt.