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EuroGalaxy III

Investment size
Investment type
Secondary (CLO)
Initial Investment
March 2016
UK & Ireland
Diversified Financial Services

Borrower Overview

  • In the wake of 2.0 CLO resurgence, Pinebridge, a major FI Asset Manager with meaningful Leveraged Finance activity (10.0 bn$ AUMs in 2015), carried on with its CLO activity by launching in December 2013 its first European 2.0 CLO, Eurogalaxy III
  • The Manager had already launched 3 2.0 US CLOs at the time, and launched 5 more since then (in the US and Europe), bringing its total # of launched CLOs since 1999 to 22 vehicles

Deal Description

  • Although the vehicle was successfully syndicated and performed in line with expectations, the first months of 2016 proved difficult for mark-to-market investors, given the hectic secondary prices movements for CLO liabilities
  • In spite of the situation‘s merits, this type of investors was therefore looking to rapidly sell their exposure, ready to take a higher discount on their stake

Kartesia Contribution

  • Previous knowledge & diligence of the Manager (Pinebridge), with a conservative and solid track record, enabling comfort on manager selection and robust vehicle projections
  • 2-year existence of the vehicle display a robust track record – historical coupon payments and portfolio are showing (i) conservative and highly diversified approach to portfolio management, and (ii) steady frequency and level of coupons towards Subordinated Notes
  • Majority stake, i.e. our approval is necessary to call the vehicle, while we can approve of the refinancing of the vehicle on our own


  • Fully ramped vehicle with a first cash coupon payment 15 days after closing for ca. 3.5% of nominal (PF price of 71.0%)
  • Solid Subordinated Notes distribution strategy, with low downside risk (very low tail end risk – good performed on NAV metrics)


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