Canadian private equity firm Onex Corp has closed its latest CLO fund on $514m amid grander plans to gather $4.5bn for its fourth flagship vehicle.
CLOs are becoming increasingly popular with private equity firms as investors look to spread their risk and take advantage of rising demand for lending.
Onex, traditionally a strong investor in its own vehicles, provided $40m towards the CLO.
The firm’s Onex Credit arm, which manages more than $3.3bn in senior secured loans and high-yield bonds, focuses exclusively on non-investment grade credit investing.
Fellow buyout major Carlyle recently closed its second European CLO fund on €335m, following the close of its debut euro vehicle on €350m in June.
Onex is reportedly looking to maintain fundraising consistency by targeting $4.5bn for its next private equity fund, according to a Bloomberg report in August.
The firm last gathered $4.7bn for its Onex Partners III vehicle in 2009, and apparently plans to stick to that fund’s strategy of large-cap North American investments.
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