Alcentra Ltd., the money manager owned by the Bank of New York Mellon Corp. (BK:US), hired JPMorgan Chase & Co. (JPM:US) for its first European collateralized loan obligation since 2008, according to three people with knowledge of the matter.
The bank is setting up investor meetings for the deal, said the people, who asked not to be identified because the deal is private.
Alcentra Chairman David Forbes-Nixon declined to comment. Kate Haywood, a spokeswoman in London with JPMorgan, also declined to comment.
The firm managing $23 billion is among a growing array of asset managers reviving CLO issuance in Europe. London-based Cairn Capital Ltd. sold a 300.5 million-euro ($391.2 million) fund in February while Apollo Global Management LLC (APO:US) and Pramerica Investment Management Ltd. are close to pricing their deals.
Alcentra raised more than 8 billion euros of European CLOs until 2008 for 18 deals, mainly through the Jubilee and the Wood Street series, according to Fitch Ratings. It also took over the running of the 300 million-euro Silver Birch CLO I BV from WestLB AG in 2010.
The firm was formed in 2002 through the acquisitions of U.S. loan manager Imperial Credit Asset Management, and its European peer Barclays Capital Asset Management. Alcentra became a unit of the Bank of New York in 2006, according to its website.
Issuance for new European CLOs may be about 3 billion euros this year, according to analysts at Citigroup Inc. and JPMorgan.
CLOs are a type of collateralized debt obligation that pool high-yield, high-risk loans and slice them into securities of varying risk and return. A basis point is 0.01 percentage point.
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