Jefferies Capital Management, a subsidiary of Jefferies Group, is closing in on its first collateralized loan obligation. Goldman Sachs is marketing the notes for the approximately $300 million Victoria Falls CLO, which will contain a minimum of 90% senior secured loans. By the mid-February closing date, about 60% of the target portfolio will have been purchased. Mark Senkpiel, the portfolio manager who runs the group, referred questions to a Jefferies spokesman, who did not return calls. Officials at Goldman also did not return calls.
Jefferies already manages a high-yield bond CDO called Jackson Creek and has had plans for a CLO for over a year (LMW, 1/30). The firm also recently struck a deal with Babson Capital Management to lend up to $2.5 billion to middle-market companies. The joint venture is called Jefferies Babson Finance and is being headed by Carl Toriello, senior managing director and head loan officer.