Callidus Capital Management is close to raising its third collateralized loan obligation, the approximately $400 million Callidus Debt Partners CLO Fund III. J.P. Morgan is underwriting the notes for the vehicle that will invest in senior secured loans with some second-lien loans, said a source. Richard Ivers, ceo of Callidus, did not return calls by press time.
Avenue Capital Management, the investment shop founded by Marc Lasry, is also on the home straight in raising its debut CLO, according to a source. He said investors have been rounded up for an approximately $400 million vehicle arranged by Bear Stearns. Richard D'Addario, formerly a senior portfolio manager at Franklin Advisers started at Avenue last May to build a CLO business (LMW, 5/7). Avenue officials declined comment.