MidOcean Makes $304M Close on First CLO Equity Fund

MidOcean Partners announced the oversubscribed final close of its inaugural MidOcean CLO Equity Fund I with $340M in capital commitments, exceeding its $300M target.

The fund received support from a diverse base of new and existing institutional investors and is managed by CLO veterans Joseph Rotondo and Jamil Nathoo. The managers intend to take a defensive investment approach with the objective of constructing a diversified and downside-protected portfolio of senior secured leveraged loans, with a preference for larger, more liquid issuances within the broadly syndicated bank loan market.

The fund is already approximately 55% deployed across seven MidOcean CLOs, representing $2.8B in AUM and bringing the firm’s total CLO AUM to nearly $5B. The latest fund close adds to the $765M MidOcean secured for its Tactical Credit III fund, also part of its credit platform, which closed in June.