Fair Oaks Income Fund Limited has announced that the underlying “Master Fund” has entered into binding contracts to acquire, in the primary market, $26.0m notional of equity notes, representing 68.5% of the total equity of Ares XXXV CLO, a new CLO backed by a portfolio of US broadly syndicated, secured loans.
The manager of this CLO’s portfolio is Ares Management, a leading global alternative asset manager with $88 billion of assets under management.
This CLO’s current target portfolio has a principal value of $400 million across an expected 177 unique bank loan issuers, with an expected weighted average exposure per issuer of approximately 0.8%.
The potential total return for this investment as estimated by the general partner of the Master Fund is between 15% and 16% per annum
FAIR : Fair Oaks invests in Ares XXXV CLO