VanEck launches first interval fund for CLO opportunities
Updated
Updated · PR Newswire · May 1
VanEck launches first interval fund for CLO opportunities
8 articles · Updated · PR Newswire · May 1
The New York-launched fund, CLOIX, is actively managed by PineBridge Investments and invests mainly in CLO equity and junior mezzanine tranches of broadly syndicated loans.
VanEck said the vehicle targets high income and total return while giving investors access to less liquid CLO segments beyond its existing CLOI and CLOB ETFs.
The unlisted fund offers limited quarterly repurchases of 5% to 25% of shares and carries elevated liquidity, leverage and credit risks, including potential loss of principal.
As AI and war threaten loan defaults, can a new fund targeting risky CLO equity avoid wiping out investors seeking high income?
Will the fund’s promised “illiquidity premium” satisfy investors when their money is locked up during a market panic?