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Analysis CLO firms
‘The enthusiasm has been great’
by Lisa Lee, Lisa Fu, Shant Fabricatorian & Kathryn Gaw
Why are so many new managers launching? Creditflux spoke to 10 who started a CLO business and found that, while it may sometimes be fraught, it’s a rewarding and enjoyable challenge
Stephen Riddell
CEO and CIO
DS2 Capital
Bio: Founding member and CIO of Apollo’s Redding Ridge Asset Management; founding member of Gulf Stream Asset Management
New shop: DS2 Capital is a CLO-focused credit investment fund. It was announced on 5 February 2026
I’m surprised how much fun it has been
Stephen Riddell
CEO and CIO
DS2 Capital
Why a start-up?
SR: I’ve never been a CEO, and it lets me explore a new, broader aspect of my career. I’ve managed top performing funds, I’ve managed teams, I’ve been a CIO, but this allows me to make something in my own vision. This was also a unique opportunity to get a group of folks together who I really love and respect and value. The longer we’ve been doing it, the more confident I am that we will be successful.
What did you find harder than you expected?
SR: Everything! Especially all the decision- making. Since everything is from scratch, there are so many decisions to make. Think of building a house — for instance, you have to choose the drawer handles for the kitchen cabinets. Magnify that by 600 times.
What was easier than expected?
SR: When we first started talking about doing this, the idea really came from a close friend of mine who has his own firm called Crossbow Advisors. They had that relationship with Gallatin Point Capital, our lead sponsor. He facilitated that relationship and I immediately felt a bond with the Gallatin folks.
Gallatin is a really strong institutional investor group and it has so many significant relationships, that really helped.
What was a surprise?
SR: I’m surprised how much fun it’s been. I wouldn’t have thought when we started that we would end up using my townhouse as a temporary office, but here we are. We are physically close, so there’s certainly no issue with communications.
What do you want the market to know?
SR: Several of us have experience at one of the top shops in the world, and having the chance to take big firm access and track record and marry that with the chemistry and culture of a small firm is a great starting point toward success.
The feedback as we’ve previewed the story has been: you’re not a new manager, you’re just a reconstituted manager. And that’s really meaningful going into a market that’s already crowded.
Boris Okuliar
Chief strategy officer and head of global diversified credit
Corinthia Global Management
Bio: Okuliar was co-head of global liquid credit at Ares and head of capital markets for global market strategies at Carlyle
New shop: Corinthia is a direct lender. Okuliar joined in February 2026
The general warmth of the market response has been incredible
Boris Okuliar
Chief strategy officer and head of global diversified credit
Corinthia Global Management
Why start a new CLO manager?
BO: The really exciting part to me is that you have a blank sheet of paper. Where do you start, where are you going, how do you see it coming together, how do you see it evolving into one cohesive offering?
[Co CEO] Ian Fowler and I got to speaking a little while ago. His team has always been very good and has a good reputation in terms of credit underwriting and credit selection. It was interesting to hear the story in terms of what they wanted to do in the business. They have a respected team on both sides of the Atlantic. A new manager with a strong group of people that know each other well, that have worked together for a long time, have a great reputation, are hitting the ground running as a global organisation, with an infrastructure in place — it is a pretty compelling opportunity.
I could envisage the steps and ways you could build from this foundation. With strong institutional backing and substantial AUM in place, the team has already made dozens of investments across deals on both sides of the Atlantic. A very scalable next step, especially if you want to enter the broadly syndicated markets, is to look at raising capital to start managing CLOs.
We’re focusing the first couple of quarters on getting that right, then starting to populate a team.
What was harder than you expected?
BO: Probably the most difficult aspect is that there are not enough hours in the day. You’re trying to wear several hats and you’re trying to be certain around the things that you might before have taken for granted.
What was easier than thought?
BO: The level of support internally, the enthusiasm internally, has actually been greater than I expected.
What was a surprise?
BO: I felt that everyone would be so busy that they would have a hard time lifting their head up to help, but people have been really enthusiastic about being helpful.
The general warmth of the market response has been incredible and greatly appreciated. I’ve been surprised by the number of in-bounds: people asking how can they help, banks lining up, friends providing support from across the market; even people who were formerly competitors that have capital that could be of use.
What are you looking forward to?
BO: One of the nice things about that blank sheet of paper is getting the technology right. I think there’s a lot to be said around having the right tech stack, and how you inform that with AI and other types of tools. There are ways to leverage those resources to try to create an advantage for yourself as a manager, but also to create a differentiated experience for the investor. For an LP, the ability to get transparency on what is going on in their accounts, what assets are performing, is key.
Steve Dunn
Head of European CLOs and private debt
CIC Private Debt
Bio: Dunn has spent almost 20 years at CIC
New shop: CIC Private Debt is part of asset management firm La Française Group. Its first deal priced in November 2024
CLOs issued: 2
You need sufficient equity to roll out five or six CLOs
Steve Dunn
Head of European CLOs and private debt
CIC Private Debt
Why did you move into CLO issuance?
SD: CIC Private Debt has been around for over 20 years. Issuing CLOs had always been on the agenda, but it was all about timing. We had strong relationships with most European CLO managers as we had invested in their CLOs for years. On top of that, CIC was the junior and co-manager with two tier-1 CLO managers when CLO 2.0 kicked off back in 2013. We had a seven-year track record in running large-cap unlevered funds. We also provided senior financing in third-party warehouses for CLO managers. So we thought we had dotted as many i’s and crossed as many t’s as we needed to launch a CLO.
What was harder than you expected?
SD: I think the most challenging aspect as a debutant was going to meetings across Europe where the opening line was, “Just to let you know, we don’t ‘do’ first-time managers.” It’s not easy when you have an hour with these investors, and that’s the opening gambit. So we needed to rely on our strong track record in the asset class, and our team’s ability to persuade investors of our expertise, which was gathered from investing in other third party CLOs and participating in warehouse CLOs.
The investor base appreciated that. We were delighted to see so many who said, “We don’t do first-time managers,” who came in to Victory Street CLO I.
What surprised you?
SD: Maybe surprise isn’t the right word, but never underestimate the sophistication of the investor base. Most will pick your brains on every name.
Is it vital to have scale behind you when setting up a new platform?
SD: I think I would say it’s the level of support, rather than scale, that is crucial. We’re fortunate to have a very supportive parent, La Française Group. If you run out of equity or you don’t have the backing, you’re either not going to issue CLOs or you have to rely on third-party equity investors, which can be volatile — especially for new managers. Every investor wants to know that you have sufficient equity to roll out the next five or six CLOs. That’s the minimum to gain credibility.
Thomas Kyriakoudis
Partner and co-head of credit solutions
LGT Capital Partners
Bio: Kyriakoudis joined LGT Capital Partners in 2021. He was previously CIO at Permira Credit, where he also helped establish the CLO business
New shop: LGT Capital Partners specialises in private markets and direct lending. Its first deal priced in July 2025
CLOs issued: 2; marketing a third
Investors are keen to back a platform that has institutional quality and scale
Thomas Kyriakoudis
Partner and co-head of credit solutions
LGT Capital Partners
Tell me about LGT Capital Partners, its strategy and why you decided to become a CLO issuer?
TK: LGT Capital Partners is a large asset manager, 100% owned by the Royal Family of Liechtenstein. We manage more than USD 110bn of assets globally. Part of the core capital of the firm is a roughly USD 22bn endowment fund, which is run as a Harvard/Yale-style long-term endowment model.
That endowment is the core of our capital, and we’ve actually been investing in the CLO asset class all the way back to 2012. So for us, one of the key motivations is to effectively run that capital ourselves.
We started thinking about this seriously in terms of running our own CLOs approximately two years ago. We’ve allocated significant capital, significant internal resources and hired a PM, Ilina Chen, from Sculptor.
What has been a bigger challenge than anticipated?
TK: We’ve had a squeeze on loan spreads throughout 2025, so that’s been challenging the arbitrage somewhat. But I would actually say the hardest thing in terms of a business setup is finding the right talent. It’s a very competitive market.
What has been easier?
TK: I think the thing that’s been less challenging is getting loan collateral. LGT Capital Partners is an investment entity that invests a lot of capital in private equity. It’s our main business — over two-thirds of our assets — so our relationships with private equity GPs are deep and long-standing.
So I think when it came to being allocated loan collateral, our name was recognised by GPs, and our strong relationships meant that we got good allocations — in some cases, all that we asked for.
How big is your team? And are you looking to expand?
TK: We’re ambitious for the business, but let’s say it’ll be a gradual growth. We’re providing the majority of the equity capital from our own internal funds, so we’re cautious not to just grow for its own sake.
LGT has a significant amount of capital behind you. How important is that?
TK: It’s crucial. When we talk to liability investors, for example, they’re keen to back a platform that has institutional quality and scale. And that’s something we’ve sought to do from day one — to produce a manager of institutional quality that provides comfort to those investors so they won’t be stuck on a shelf that only does two or three deals. You don’t want to own bonds that are thinly traded because the shelf is an infrequent issuer.
I think that’s what’s probably changed from many years ago when I joined the CLO industry where you had a lot more, let’s say, boutique managers.
Robert Zable
Global head of CLO
Guggenheim
Bio: Former global head of liquid credit at Blackstone tasked with overseeing Guggenheim’s expansion of CLOs and liquid loans
Why did you decide to start a new CLO manager?
RZ: Does the world really need another CLO manager? [Laughs.] In all seriousness, I was super excited to build the CLO business at Guggenheim because I feel strongly there is a place for a new manager — when built with significant scale and expertise. When I mention large scale, that’s in terms of a large investing team in addition to technology and middle office — all this is critical to building a lasting, consistent, global business.
What has been harder than you expected?
RZ: It’s harder than I thought to come up with a new shelf name! We ended on GCM 2026-1 [Guggenheim CLO Management], as all the New York park names were taken!
What has been easier than you thought?
RZ: It’s been easier than I thought to re-engage and tell our story with our global investor community who have been so amazing and supportive. Of course, I have known many for years and it has been great to reconnect — especially when starting with a completely clean and new portfolio.
What surprised you?
RZ: I was surprised not only with the strong investor response, but also the response from talent looking to join our team. It’s super competitive out there now on talent.
What would you like the market to know about your shop?
RZ: We are fortunate to have significant equity support, and we’re looking forward to being consistently in the market this year. Additionally, one exciting thing for us is our partnership with TWG AI and Palantir. We are working closely with them on thinking through disruption risk and it is great to be able to lean on real expertise.
Vivek Bommi
Head of leveraged credit
Macquarie Asset Management
Bio: Formerly head of European and UK fixed income at AllianceBernstein; senior portfolio manager at Neuberger Berman
New shop: Macquarie launched its first CLO in April 2025.
CLOs issued: 2
Why launch a new business in this environment?
VB: The best time to plant a tree was 25 years ago. The second best time would be today. Just because it’s an established market doesn’t mean it’s not attractive.
AI will be the make or break for managers over the next several years. There are firms that were large managers which got 2008, 2009 very wrong and are no longer large. They may still have a business, but they didn’t grow with the market.
Was anything easier than you expected?
VB: The reception. While there are newer managers out there, and each have their positives, one of our strong positives that’s resonating with our investors has been the strong support from our parents and being part of a large firm. The brand name Macquarie really did help.
What was a surprise?
VB: I joined in December 2023 and we launched our first CLO in April 2025. It’s a long period where we were doing the operational work. We were careful to get it right.
What has it been like as a new manager?
TK: You really can’t take the same playbook as someone who’s been in the market for 20 years. You do have to show a differentiated process. You need to have good, concise answers on how portfolios are dealing with the threats of AI, and how people are looking at it.
AI is going to have that same effect. There are definitely going to be winners and losers.
Matthias Alt
Partner and head of credit partners
Park Square Capital
Bio: Alt has spent more than 17 years at Park Square Capital. Prior to joining Park Square, he worked in Merrill Lynch’s research division and at McKinsey & Company
New shop: Park Square Capital is a London-based European private debt specialist. It launched its debut CLO strategy this year
CLOs issued: 0
Investors are keen to back a platform that has institutional quality and scale
Matthias Alt
Partner and head of credit partners
Park Square Capital
Why did you decide to start a CLO shop?
MA: Launching a European CLO strategy felt like a natural evolution rather than a step into something unfamiliar. We’ve been active investors in the broadly syndicated loan market since 2007 and have built deep experience in underwriting, portfolio construction and credit selection across cycles. We have also invested more than EUR 100m in European CLO double Bs, which has helped refine our understanding of structured credit and CLO dynamics.
What ultimately drove the decision was our ability to launch the strategy while maintaining full independence. We believe retaining control rights over the underlying CLOs is critical. Building a competitive, long-term platform requires a meaningful commitment of balance sheet capital.
The engagement from investors was encouraging. Many allocators already understand the asset class and were receptive to a manager with a strong credit pedigree, clear alignment and a long-term mindset.
What was harder than expected?
MA: One area that required particular focus was navigating the evolving legal and regulatory landscape around CLOs. Requirements relating to risk retention, ESMA reporting, and ESG disclosures continue to develop, and we were deliberate in taking the time to fully understand these frameworks. We have developed a clear, scalable approach to address these requirements, positioning the platform for sustainable growth.
What was easier than expected?
MA: Our existing relationships across the loan market, including with banks, sponsors and counterparties, translated naturally into the CLO market. Access, dialogue and credibility were already established, which made the transition into issuance and portfolio construction more seamless than one might expect for a new entrant.
What was a surprise?
MA: One surprise was how global the investor base for European CLOs has become. Historically the market was regionally concentrated, but we’ve seen strong interest from a broad range of international investors, particularly from the US, looking to diversify allocations and take advantage of value in Europe.
Another was the degree to which investors are now focused on manager differentiation. The conversation has moved well beyond spreads and structures to questions around credit philosophy, downside management, trading discipline and alignment.
Why do you think there have been so many entrants into the CLO market recently?
MA: There are a few structural factors at play. CLOs have earned credibility through their performance across multiple stress periods, which has broadened and deepened the investor base. However, barriers to long-term success remain high. We expect differentiation, scale, alignment and consistency of performance to matter increasingly.
Jacob Walton
Co-PM, CLO strategy
Sona Asset Management
Bio: Previously director, CLO, at Five Arrows
New shop: Sona was set up in 2016 by John Aylward. It primarily focuses on European credit investing. Its first deal priced in November 2023
CLOs issued: 6
There’s a difference between doing a deal and being a good CLO manager
Jacob Walton
Co-PM, CLO strategy
Sona Asset Management
What made you decide to launch a CLO management business?
JW: Sona was managing around USD 2bn of leveraged loans before starting its CLO business. So it’s always been a natural progression for us to come into this market.
There is room in European credit to differentiate yourself. You’ve got to have the right building blocks, from asset sourcing, to access to secondary markets, and through to fundamental corporate credit underwrites. You’ve got to have all that in place on day one.
Where we are in the credit cycle, what will define CLO performance is credit selection as opposed to credit aggregation. Having a well-defined vision on credit investment and how you position yourself within sectors and through the cycle, is extremely important. That’s really where we felt we could employ Sona’s broader expertise — and CLOs were a good vehicle for us to do that.
What were the most significant challenges you faced?
JW: Anecdotally, there’s 25 to 30 potential new CLO managers waiting in the wings — so the market has the potential to get crowded. Ultimately, it feels like the main barrier to entry is having equity capital.
There’s a difference between doing a deal and being a good CLO manager. People will get deals done, but the performance with CLOs is always in the long-term, over a number of years. So it’s always hard to judge early performance with any high degree of accuracy.
You’ve seen the tiering on the liability pricing side become quite compressed between new issuers and existing issuers. So from that perspective, now is probably a good time to start. But access to assets becomes the challenge.
What key insights have you gained from CLO issuance?
JW: We were very clear when we came into CLO management that you need a real reason to be here. You need a strong view of your investment rationale and how you want to express that within European corporate credit, specifically leveraged loans and high-yield bonds within a CLO.
Leland Hart
CIO for performing credit
Warwick Capital Partners
Bio: Formerly co-CIO at Alcentra (now BSP), managing director overseeing loans and CLOs at BlackRock Asset Management. Joined Warwick and launched CLO business in 2022. Priced first deal in 2023
CLOs issued: 7, ramping 8th
Learn to meditate and stay organised
Leland Hart
CIO for performing credit platform
Warwick Capital Partners
Why did you start as a new manager?
LH: The reason for starting a new CLO platform was based on the appeal of working with an established firm that was founded by long-time friends and specifically partnering with equity investors.
Also, at the time of launch, which was towards the tail end of COVID, we felt there was an opportunity to attract a team that wanted to be part of a growing platform while also being close to home. [Warwick’s CLO office is in Stamford, Connecticut.] Thus far, that’s proven to be correct, especially for those with growing families.
In the CLO space, high quality is the only scalable and repeatable strategy. So we focus on high quality assets and on hiring the best, smartest people. It is all about the people. We are fortunate to be located in a place that is full of experienced and talented individuals.
What was harder than you expected?
LH: Building infrastructure is obviously a lot harder than using infrastructure. Whether it’s choosing the appropriate risk and trading systems, the health plan or even the carpet, those are all things that ultimately are incredibly important and need to be done simultaneously… and correctly.
You’ve done this for a couple of years. Any words of advice for others?
LH: Don’t do it! [Laughs.] But if you are going to, learn to meditate and stay organised. Ultimately our goal is to build a top performing investment business that is scalable and repeatable in its processes.
Do you miss midtown lunches?
LH: The social fabric of the market is really important, and physically seeing people in person on a regular basis — you can’t replace that. But I’m in the city a lot, and I’m talking to people every day.
Tom Flannery
CIO
CTM Asset Management
New shop: First US BSL CLO priced in June 2025
CLOs issued: 3
We had a lot of analysts come from larger firms
Tom Flannery
CIO
CTM Asset Management
Why did you launch the CLO business?
TF: It was the combination of having a great partner in Chatham Asset Management and the ability to bring together a great team. Chatham takes a long-term view. It put substantial capital behind CTM — with USD 300m earmarked for CLO equity — and provided financial support to enable us to build a 14-person team.
Was anything harder than you expected?
TF: We knew we had a strong senior team, but we didn’t know what the talent pool would look like when we went to hire, and we didn’t know exactly the types of people we would attract. We are extremely proud of the people we were able to bring onboard. We had a lot of analysts come from larger firms to join a start-up. I think there was a desire to be part of a smaller, more collaborative firm.
What is the most important lesson you learned?
TF: Among investors, there’s an appetite for teams with long track records and stability among the investment professionals — and I appreciate that. That said, when you bring together a group of people who come from different backgrounds, who have covered a lot of different issuers and who have had unique experiences, it really can be powerful. You draw upon all that knowledge and experience to implement best practices from a process and portfolio construction standpoint.