MJX Asset Management, the newly formed asset management business that is acquiring the Venture CDO 2002 and Venture II CDO 2002 loan funds of Barclays' Bank, is targeting its third deal, Venture CLO 2003. Credit Suisse First Boston is the lead underwriter for the CLO, which is said to be in the region of $225 million. Barclays is said to be an investor in the deal. Hans Christensen, lead portfolio manager and one of the founders of MJX, declined comment.
Despite shrinking spreads and a shortage of leveraged loan assets, a number of investors are aiming to ramp up CLOs. "These vehicles are for over five years, and the liabilities have come in," said a source. "Sourcing assets is a short-term issue," he added.
MJX is owned by Robert Sillerman and members of the existing Venture management team, including Christensen and Martin Davey. Michael Regan is also moving with Christensen and Davey. The team was together at Citigroup's alternative investment strategies unit before joining Barclays in 2001 (LMW, 8/01). Ex-Eaton Vance head par loan trader and portfolio manager Gretchen Bergstresser started work recently as a managing director (10/1). CSFB led the first two Venture deals.