Private debt manager CIFC and the C$70.6 billion ($57 billion) Healthcare of Ontario Pension Plan, Ontario, have entered into a strategic partnership to form CIFC CLO Strategic Partners II, said HOOPP spokesman Joe Vecsi in an email.
The risk-retention fund, which "intends to purchase the majority equity positions of CIFC's future, new issue collateralized loan obligations to comply with U.S. and EU risk-retention rules," according to a CIFC news release. Over the next several years, the fund is expected to support about $7.5 billion of incremental new issuance, the news release said.
CIFC will commit up to $75 million to the fund, while HOOPP will commit a "substantial" amount. Mr. Vecsi would not provide a specific amount.
"CIFC has a strong and consistent track record, making the firm our choice with whom to partner to access new issue CLO opportunities. As we embark on this partnership, we look forward to leveraging CIFC's deep expertise as one of the top CLO managers in the world," said David Long, HOOPP's senior vice president and chief investment officer, in the news release.
CIFC has about $15.7 billion in assets under management.