Aladdin Capital Management recently closed its first $400 million collateralized debt obligation--Landmark CLO I--after ramping up the vehicle for the last six months. Gilles Marchand, senior portfolio manager, said the fund decided to launch its first vehicle to diversify its investment grade portfolio and begin managing high yield assets. "We try to focus on borrowers that have assets with scarcity value," said Marchand, explaining that the fund primarily invested in cable, gaming, and broadcasting for the vehicle.
The portfolio comprises 80% leveraged loans and 20% high yield bonds. The cash flow, arbitrage deal is funded by debt underwritten by Banc of America Securities, split into four debt tranches and an equity tranche. Deutsche Bank is the trustee.