The client, their challenge
Our client is a global special situations investment firm expanding in the U.S. through collateralised loan obligations (CLOs). Headquartered in London, the firm has over $2.5bn in assets under management, predominantly focused on European debt. The client is expanding into the U.S. market by launching its first CLO and offering investors “regular distribution with superior risk-adjusted returns”.
With the launch of its first CLO fund, the client needed assistance in setting up its operating systems and processes. The team wanted to make sure they had best-in-class infrastructure in place so their portfolio managers could focus on creating returns. The operations team, specialising in direct lending and special situations, needed support to strengthen their CLO capabilities to meet their expanding middle- and back-office requirements.
The solution
In partnership with Allvue, IQ-EQ delivers outsourced operational support to the client. IQ-EQ’s loan servicing team provides daily transaction processing, cash and position reconciliation, and portfolio reporting. Our loan settlement team provides loan trade settlement solutions via ClearPar and assists the client in managing its liquidity.
Lastly, IQ-EQ’s comprehensive CLO solution provides compliance review and reconciliation, working with the trustee to ensure accurate and timely reporting of monthly and IPD reports.
The results
The client is now launching its second U.S. CLO with more in the pipeline, leveraging IQ-EQ’s managed service capabilities. Our dedicated teams in US, Ireland and Asia-Pacific continue to work closely with the client to provide operation support and CLO solutions. The client trusted us to deliver and continues to trust us with their expanding CLO business and has broadened our services to them to include corporate services on their CLOs.
