Permira, a European buyout firm, has entered the US collateralized loan obligation (CLO) market with a $430.6 million deal. This transaction, arranged by JPMorgan Chase & Co., demonstrates the increasing interest in CLOs, which are significant purchasers of leveraged loans.
CLOs repackage this debt into securities of varying risk and size. Permira's entry into the US market through CLOs is a strategic move to expand its presence. The firm aims to take advantage of the thriving CLO sector, which is currently valued at $1 trillion, indicating strong demand for these investment products.