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Natixis announces the closing of a European CLO for a total of €308.4 million, structured and marketed by Corporate & Investment Banking and managed by Natixis Asset Management
Against the backdrop of investors’ current quest for yield and alternative solutions that offer diversification, Natixis announces the closing of European CLO (Collateralized Loan Obligation) Purple Finance CLO 11 for a total of €308.4 million2.
This first CLO 2.0 managed by Natixis Investment Managers’ affiliate Natixis Asset Management was structured and marketed by Natixis’ Corporate & Investment Banking arm and complies with CRD IV risk-retention rules. The deal met with strong investor demand.
Buoyant market relying on robust expertise
Professional investors are seeking solutions that combine yield and credit risk management, and are revisiting these investment vehicles.
CRD IV regulation, which came into effect in July 2013, has limited availability of CLOs on the market as a result of rules on the alignment of interests, entailing hefty capital requirements and thereby creating a real challenge for investment managers.
Natixis’ experts at both Corporate & Investment Banking and Natixis Asset Management worked closely together to address these challenges. Natixis Asset Management benefits from more than 15 years’ expertise in corporate debt securitization and is well renowned on this asset class. Teams at Corporate
- Investment Banking who managed the structuring and placement of the bonds issued by the CLO have 13 years’ experience on this market.
Diversified portfolio and high-quality management
The Purple Finance CLO 1 portfolio is diversified across various business sectors and geographies and consists of around one hundred corporate debt obligations. At least 95% of the portfolio will be made up of first lien senior loans at any given time, while a maximum of 5% of the portfolio can be invested in subordinated loans and/or in bonds.
Purple Finance CLO 1 is managed by Natixis Asset Management’s corporate private debt team, which is in charge of a range of individual mandates, funds and CLOs with total assets of close to one billion euros (as at November 30, 2017).
Deputy Chief Executive Officer of Natixis Asset Management, in charge of Fixed Income and Equities Ibrahima Kobar notes: "Natixis Asset Management has been managing structured debt to serve its clients for more than 15 years. We have the necessary set-up required to meet the range of regulatory requirements involved in CLO 2.0 and a group of highly skilled specialists well equipped to structure, assess risk and select the appropriate loans. We aim to launch one CLO each year, market conditions permitting, and are also carefully considering the US market with a view to pursuing our international expansion."
Emmanuel Issanchou, Head of Global Structured Credit & Solutions at Natixis’ Corporate & Investment Banking arm, notes: “Most of the Purple Finance CLO 1 tranches were oversubscribed. The CLO securitization format enables sophisticated investors to carefully steer their risk/return balance as a result of the various tranches on offer and benefit from a diversified risk profile, while also enjoying a yield premium as compared to the underlying loans. Natixis is extremely active on this market, with 18 deals arranged in 2017.”
- Purple Finance CLO 1 is a securitization vehicle governed by Irish law
- Source Natixis
Natixis Asset Management, an affiliate of Natixis Investment Managers, has more than €326 billion in assets under management for institutional clients, distribution agents and individual investors1. Natixis Asset Management offers its clients a full range of active fixed income, equity and multi-asset class investment solutions to address their various needs. Natixis Asset Management has a strong international presence with investment management and research teams across Europe, Asia2 and the United States3.
Natixis Asset Management’s offer is distributed through the Natixis Investment Managers global distribution platform and Groupe BPCE’s retail networks, the second-largest banking group in France4.
>Further information: www.nam.natixis.com
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1 Source: Natixis Asset Management – 09/30/2017.
2 Asia via Natixis Asset Management Asia Limited – Registered as a fund management company with the Monetary Authority of Singapore – Natixis Asset Management subsidiary.
3 US via Natixis Asset Management U.S., LLC, limited liability company, registered as an investment adviser with the SEC.
4 Source: BPCE S.A. – 08/31/2017.
Natixis Investment Managers serves financial professionals with more insightful ways to construct portfolios. Powered by the expertise of 26 specialized investment managers globally, we apply Active ThinkingSM to deliver proactive solutions that help clients pursue better outcomes in all markets. Natixis ranks among the world’s largest asset management firms1 (€813.1 billion / $961.1 billion AUM2).
Headquartered in Paris and Boston, Natixis Investment Managers is a subsidiary of Natixis. Listed on the Paris Stock Exchange, Natixis is a subsidiary of BPCE, the second-largest banking group in France. Natixis Investment Managers’ affiliated investment management firms and distribution and service groups include Active Index Advisors®;3 AEW; AlphaSimplex Group; Axeltis; Darius Capital Partners; DNCA Investments;4 Dorval Asset Management;5 Gateway Investment Advisers; H2O Asset Management;5 Harris Associates; Investors Mutual Limited; Loomis, Sayles & Company; Managed Portfolio Advisors®;3 McDonnell Investment Management; Mirova;6 Natixis Asset Management; Ossiam; Seeyond;7 Vaughan Nelson Investment Management; Vega Investment Managers; and Natixis Private Equity Division, which includes Seventure Partners, Naxicap Partners, Alliance Entreprendre, Euro Private Equity, Caspian Private Equity and Eagle Asia Partners. Not all offerings available in all jurisdictions. For additional information, please visit the company’s website at im.natixis.com | LinkedIn: linkedin.com/company/natixis-investment-managers.
Natixis Investment Managers includes all of the investment management and distribution entities affiliated with Natixis Distribution, L.P. and Natixis Investment Managers S.A.
- Cerulli Quantitative Update: Global Markets 2017 ranked Natixis Investment Managers (formerly Natixis Global Asset Management) as the 15th largest asset manager in the world based on assets under management as of December 31, 2016.
- Net asset value as of September 30, 2017. Assets under management (“AUM”), as reported, may include notional assets, assets serviced, gross assets and other types of non-regulatory AUM.
- A division of Natixis Advisors, L.P.
- A brand of DNCA Finance.
- A subsidiary of Natixis Asset Management.
- A subsidiary of Natixis Asset Management. Operated in the U.S. through Natixis Asset Management U.S., LLC.
- A brand of Natixis Asset Management. Operated in the U.S. through Natixis Asset Management U.S., LLC.
Expert
Emmanuel Issanchou
Global Head of Structured Credit & Solutions, Corporate & Investment Banking, Natixis
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About Natixis
Natixis is a French multinational financial services firm specialized in asset & wealth management, corporate & investment banking, insurance and payments. A subsidiary of Groupe BPCE, the second-largest banking group in France through its two retail banking networks, Banque Populaire and Caisse d’Epargne, Natixis counts nearly 16,000 employees across 38 countries. Its clients include corporations, financial institutions, sovereign and supranational organizations, as well as the customers of Groupe BPCE’s networks. Listed on the Paris stock exchange, Natixis has a solid financial base with a CET1 capital under Basel 3(1) of €11.1 billion, a Basel 3 CET1 Ratio(1) of 11.5% and quality long-term ratings (Standard & Poor’s: A+ / Moody’s: A1 / Fitch Ratings: A+).
(1) Based on CRR-CRD4 rules as reported on June 26, 2013, including the Danish compromise - without phase-in. See note on methodology in the 2Q19 earnings material.
Figures as at 30 June 2019