Muzinich & Co., a New York-based credit specialist, has joined forces with Eagle Point Credit Management to establish a robust platform for collateralized loan obligations (CLOs) in Europe.
This partnership aims to leverage the expertise of both firms to capitalize on the demand for structured credit investments in the European market, offering investors access to diversified opportunities with risk-adjusted returns.
The collaboration combines Muzinich’s experience in credit management with Eagle Point’s knowledge in CLO structuring and portfolio management.
Muzinich, managing approximately $34 billion in assets as of early 2024, has built a reputation for delivering credit solutions across public and private markets.
Eagle Point, with $7.3 billion in assets under management, is a recognized player in CLO securities and debt investments, bringing a wealth of technical expertise to the partnership.
Together, the firms are positioned to navigate the complexities of the European CLO market, which has seen interest despite economic uncertainties.
The European CLO market has faced challenges in recent years, including the impact of the COVID-19 pandemic, which led to higher defaults and reduced loan supply, according to a 2020 S&P Global Ratings report.
However, the market has shown resilience, with structural protections and diversified portfolios helping to mitigate risks.
The partnership between Muzinich and Eagle Point comes at a time when regulatory changes are fostering a more programmatic issuance environment, improving liquidity and attracting a broader investor base.
This includes the rise of exchange-traded funds (ETFs) and mutual fund structures in Europe, which are beginning to mirror the more mature U.S. market.
Under the new platform, the firms aim to issue new European CLOs, building on Muzinich’s existing private capital strategies and Eagle Point’s track record in managing CLO debt and equity tranches.
The initiative will focus on creating vehicles that offer attractive yields with low duration risk, appealing to institutional investors seeking stable returns in a volatile economic climate.
The partnership also plans to integrate environmental, social, and governance (ESG) principles, aligning with growing investor demand for sustainable investment options.
This approach follows the lead of firms like Aegon Asset Management, which has emphasized ESG in its European CLO operations.
The collaboration is expected to enhance Muzinich’s footprint in Europe, where the CLO market remains capacity-constrained compared to the U.S.
By combining Eagle Point’s operational expertise with Muzinich’s global reach and client relationships, the platform is poised to deliver consistent issuance and robust portfolio management.
Industry observers note that this move reflects a broader trend of U.S.-based firms expanding into Europe to capture opportunities in a market with fewer dominant players.
As the partnership progresses, Muzinich and Eagle Point aim to set a new standard for CLO management in Europe, offering investors access to high-quality, diversified credit portfolios.
With a focus on innovation, risk management, and sustainability, this platform is positioned to thrive in the evolving landscape of alternative investments.