Wellington Management Expands Investment Platform With New CLO Offerings

First CLO deal closed yesterday at $405.6 million

BOSTON--(BUSINESS WIRE)--Wellington Management (“Wellington”), one of the world’s largest independent investment management firms, announced the pricing of its inaugural collateralized loan obligation (CLO), Wellington Management CLO 1 Ltd, a $405.6 million US CLO, which is secured primarily by broadly syndicated first lien loans.

Wellington’s CLO business is an extension of the firm’s established credit platform, which as of 30 June 2023 managed approximately US$446 billion in fixed income assets. This includes US$81 billion in leveraged credit and structured finance, with US$17 billion combined under management in bank loans and CLO tranche investments. Wellington made its first bank loan and CLO tranche investments in 2004 and has continued to bolster its expertise, research capabilities, and technology investments over time. Jeffrey Heuer and David Marshak, members of the Leveraged Credit Team, are Co-Portfolio Managers for the CLO Platform.

“Entering the CLO management business is a natural adjacency and extension of our deep experience investing in leveraged credit,” said Terry Burgess, Managing Partner and Head of Investment Boutiques for Wellington. “We are excited to expand relationships with clients globally, across both debt and equity tranches, to deliver investment excellence within the CLO structure as part of a multi-year strategic initiative. We have raised equity capital through a combination of client partnerships and firm capital and plan to return to the market as a repeat issuer and aspire to become a top tier CLO manager.”

Morgan Stanley served as placement agent and structuring agent.

About Wellington Management
Wellington Management is one of the world’s largest independent investment management firms, serving as a trusted adviser to over 2,500 clients in more than 60 countries. The firm manages more than US$1.1 trillion for pensions, endowments and foundations, insurers, family offices, fund sponsors, global wealth managers, and other clients. Wellington aspires to provide excellent service to clients through a unique combination of independence enabled by its distinctive private partnership model, diverse perspectives through its unified, multi-asset investment platform, and relentless curiosity and intellectual rigor fostered by its enduring collaborative culture.