Kartesia launches European CLO platform KLM

Kartesia, the European specialist provider of capital solutions for small and mid-sized companies, is pleased to announce the launch of its latest initiative in the European credit space, Kartesia Loan Management (KLM), marking an expansion into large-cap corporate credit. This strategy harnesses the extensive experience of Kartesia’s award-winning pan-European leveraged credit platform combined with over a decade of investing in CLO equity tranches. The platform has already raised €140M+ in CLO equity capital, demonstrating KLM’s readiness to operate as a repeat issuer, whilst also including a significant contribution from third-party investors and highlighting Kartesia’s ability to attract external capital.

The European CLO market has experienced strong growth rates in recent years, with attractive performance leading to a continued increase in institutional investor interest. This in turn has improved market depth and liquidity, fuelling positive momentum in the asset class. With banks continuing to face strict capital requirements and private capital standing as a robust and growing financing space for corporates, CLOs remain very well placed to step into that funding gap and provide much needed capital to the continent.

Kartesia has deep expertise in underwriting leveraged credit across cycles and an intricate knowledge of the European LBO landscape. With more than 50 leveraged credit investment professionals spread across 9 offices on the continent, the KLM strategy aims to capitalise on the firm’s proprietary data advantage and local restructuring expertise. Since inception, Kartesia has also deployed more than €400 million into CLO equity tranches, making KLM the natural evolution in the development of its CLO capabilities and a strategic growth pillar for Kartesia as it capitalises on the significant market opportunity for its investors. The platform also benefits from the full backing of New York Life Investment Management (NYLIM) and Candriam, which earlier this year announced they were increasing their stake in Kartesia from 33% to 80%, evidence of the confidence and conviction they have in the European credit opportunity.

The KLM strategy will draw on the expertise of a dedicated seven-person team led by Michael Htun, who joined Kartesia in 2024 as Head of CLOs and Structured Credit after several years as Head of CLO Trading at BNP Paribas. He is supported by Dean Graham, a former Director at Fortress Investments, who started as CLO Portfolio Manager at Kartesia in March. The experience of this team in credit selection is complemented by the wider Kartesia platform and its seasoned senior leadership team. This integrated approach provides local market insights and fully utilises the credit acumen of senior members of the firm.

Michael Htun, Head of CLOs and Structured Credit at Kartesia, commented: “We are delighted to bring the KLM strategy to market with the addition of several exciting new team members, leveraging the long-standing leveraged credit expertise of the Kartesia platform combined with our technical knowledge of capital formation. Our access to differentiated information will be essential in driving superior credit selection and active portfolio rotation.”

Laurent Bouvier, Managing Partner at Kartesia, added: “This is an exciting next step for Kartesia as we continue to demonstrate our capacity as one of the leading providers of attractive investment opportunities for investors seeking access to European private and structured credit. We are thankful to count on the support of New York Life Investment Management in this next phase of growth, having demonstrated their confidence in our platform with an increased stake in Kartesia earlier this year. We look forward to managing the continued development of the KLM platform for the rest of this year and beyond.”

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For further details please contact:

H/Advisors Maitland – Finlay Donaldson
kartesia-maitland@h-advisors.global
+44 (0) 7341 788 066