Polus holds €425 million initial close for third CLO equity fund

One of Europe's largest raises of its kind highlights Polus' leadership in the CLO and leveraged credit markets.

LONDON, June 17, 2025 /PRNewswire/ -- Polus Capital Management ("Polus"), an investment management firm specialising in alternative credit strategies, is pleased to announce the initial close of its third CLO equity fund, Polus Loan Investments III ("PLI III"), with €425 million of commitments (approximately $485 million). The close represents one of Europe's largest CLO equity capital raises to date and underscores the firm's continued leadership in the global leveraged credit market.

PLI III will invest in the equity tranches of Polus-managed CLOs – actively managed vehicles comprising diversified portfolios of broadly syndicated leveraged loans – as well as other CLO tranches and credit investments.

Since launching its CLO management platform in 2006, Polus' Leveraged Credit team has raised approximately $12.7 billion globally including 21 new issues, 5 resets, and 6 refinancings.[1] The firm's CLO Equity Strategy has delivered consistent quarterly distributions for over a decade with an average net distribution yield to investors in the high teens.[2]

Building on its success in Europe, Polus recently expanded its CLO management platform into the US, issuing its inaugural US CLO in 2024. The successful transition to a global CLO management platform reflects the firm's strong following and reputation among institutional investors globally.

Since 2014, Polus has raised more than $1 billion in committed capital to invest in Polus-managed CLOs and other credit investments across Europe and the US.1 PLI III marks the firm's largest CLO equity capital raise to date, providing significant runway for future CLO issuance while maintaining a focus on delivering strong risk-adjusted returns for investors.[3]

Polus' Leveraged Credit team brings nearly two decades of structuring, investment, and trading experience within CLOs. The team has invested approximately $21 billion across more than 2,100 broadly syndicated leveraged loans since inception and is currently invested in more than 500 issuers across Europe and the US.[4]

Nicholas Chalmers, Chief Executive Officer at Polus Capital Management, said:

"We are very proud of the performance of our Leveraged Credit team and CLO management platform. The strong initial close for PLI III reflects investors' confidence in our investment process and in the consistency of our track record. As one of Europe's largest CLO equity closes to date, this milestone reinforces our role as a trusted long-term partner to institutional investors seeking high yield and diversification through alternative credit strategies."

Notes for Editors

About Polus Capital Management

Polus Capital Management ("Polus") is an investment management firm specialising in alternative credit strategies. Polus has approximately $13 billion in assets under management1 and invests across the capital structure and liquidity spectrum, focusing on three complementary investment verticals: Leveraged Credit, Special Situations and Structured Credit. Polus has offices in London and New York.

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[1] Assets Under Management and Advice: AUM figures include assets under management and advice of Polus group companies as well as CLO vehicles managed by Cairn Loan Investments LLP ("CLI I") and Cairn Loan Investments II LLP ("CLI II"). CLI I and CLI II are not affiliates of Polus nor of each other, but Polus established them as independent CLO managers and provides them with key support services ("Services"). AUM figures are estimated as at 31 May 2025 and include the initial close commitments to PLI III and other uncalled commitments. AUM figures are subject to rounding and FX fluctuations.

Metrics related to the past and present investment activity of the Leveraged Credit team includes leveraged loans and high yield bonds managed by Polus in CLO vehicles, single investor solutions and commingled funds, as well as leveraged loans and high yield bonds managed in CLO vehicles by CLI I and CLI II.

[2] Performance Notes: Past performance is not necessarily indicative of future performance and future returns are not guaranteed. Securities and derivatives trading are speculative and involve substantial risk of loss. Performance may increase or decrease as a result of FX fluctuations.

"CLO Equity Strategy" refers to the strategy Polus carried out through CLI I and/or CLI II. An investment in CLI I and/or CLI II provides investors with exposure primarily to the equity tranche of Polus-managed CLOs plus a revenue share in the collateral management fees earned by CLI I and CLI II for managing the CLOs. "Polus-managed CLOs" refers to CLOs managed or serviced by Polus' Leveraged Credit team, including CLOs managed by CLI I or CLI II, which share or have shared a common investment team with Polus through the provision of Services.

Neither CLI I nor CLI II charged a management fee or incentive fee to investors in CLI I or CLI II. Accordingly, net returns for an investment in CLI I and CLI II assume no management fee or incentive fee but do include expenses related to the operating cost of CLI I and CLI II, respectively. Further details of expenses are available upon request. The return to investors in CLI I and CLI II comprises primarily the return from investments in the equity tranche of Polus-managed CLOs (which is, by definition, net of management fees and, where applicable, incentive fees applied at the level of the CLO), but also includes a revenue share in the management fees earned by CLI I and CLI II for managing the CLOs. Performance figures have been calculated by Polus and have not been independently verified.

The composite aggregate net performance statistics for the CLO Equity Strategy (e.g. net distribution yield) are based on actual performance data of CLI I and CLI II as if they had been one continuous vehicle, utilising the weighted average of the two vehicles based on their respective sizes during the period for which the vehicles overlap, over the period from 2014 to present. The actual performance of an investment in CLI I or CLI II will vary from the composite performance and no representation is made that any vehicle or investor will or is likely to achieve the results shown. Performance figures have been calculated by Polus using the official internal records and investor reporting data and have not been independently verified.

[3] PLI III: There can be no assurance that PLI III will achieve results comparable to any past results, that the returns generated by PLI III will equal or exceed those of CLI I, CLI II or any other funds or accounts advised, sponsored or managed by Polus or that PLI III will be able to implement its investment strategy or achieve its investment objectives. Prospective investors should review PLI III's offering documents for additional important information regarding risks of investing and potential conflicts of interest associated with PLI III. PLI III will only accept investments from institutional investors (i.e. accredited investors in the US or other 'professional investors').

[4] Team: Certain members of the Leveraged Credit Team may not have performed or provided services to Polus, CLI I or CLI II and may not necessarily have held such positions or been employed by Polus, in each case as applicable, for the entire term of the team's operating history. Similarly, such persons may not necessarily continue to hold such positions with or provide services to Polus, CLI I or CLI II (as applicable) in the future.