Kartesia prices first CLO following launch of KLM strategy

Kartesia, the specialist provider of debt and capital solutions for European companies, is pleased to announce the pricing of its first European BSL CLO vehicle, Kartesia CLO I, just months after the launch of its Kartesia Loan Management (KLM) strategy in May this year.

Kartesia CLO I met significant investor demand, reaching an upsized outcome at €459 million from €400 million initially targeted, reflecting strong demand for the product and confidence in the merits and strengths of the KLM team and the Kartesia platform. Kartesia CLO I is notably pricing its AAA tranche with a spread of +129, with no arranger participation in this tranche, demonstrating the wide market appetite for Kartesia’s unique expertise in the European corporate debt segment and the platform’s ability to build a diverse investor base.

In parallel, the KLM strategy has already raised more than €140 million in equity capital and draws on the expertise of a dedicated seven-person team led by Michael Htun, Head of CLOs and Structured Credit. This successful fundraising enables the Kartesia CLO franchise to fully support the ambitious development plan of Kartesia’s CLO issuance programme. This initiative also benefits from the full backing of New York Life Investment Management and Candriam which, earlier this year, announced they were increasing their stake in Kartesia from 33% to 80%, evidence of the conviction they have in the European credit opportunity across Kartesia’s offering, including CLOs.

Michael Htun, Head of CLOs and Structured Credit Kartesia, said: “We are delighted to price our very first CLO so soon after the launch of the KLM strategy. This upsized transaction is evidence of the strong appetite from investors for European CLOs and their confidence in our ability to develop an attractive product in a growing market. We believe strong credit selection will be the primary driver of outperformance at this stage in the cycle. Kartesia is well positioned to deliver on this strategy given our long track record in underwriting European leveraged credit and our access to highly local, granular information.”

Julien Rigon, Partner at Kartesia, added: “The pricing of this first CLO is an important step for the KLM strategy and Kartesia as a whole, as it establishes itself as a leading provider of structured financing solutions within European credit and a vital part of the continued growth of the Kartesia platform. We are grateful for the support of our longstanding investors, as well as our partners New York Life and Candriam, as we continue to develop our range of market-leading European credit strategies.”