Polus Capital Management has secured €425 million ($485 million) in commitments for its third CLO equity fund, marking one of the largest capital raises of its kind in Europe and reinforcing the firm’s leadership in alternative credit strategies.
The new vehicle, Polus Loan Investments III (PLI III), will focus on the equity tranches of collateralised loan obligations (CLOs) managed by Polus.
These actively managed vehicles invest in diversified portfolios of broadly syndicated leveraged loans. The fund will also target other CLO tranches and related credit investments.
Since launching its CLO platform in 2006, the London- and New York-based firm has raised approximately $12.7 billion through 21 new CLO issues, five resets, and six refinancings.
Its CLO Equity Strategy has delivered double-digit net yields for over a decade, supported by consistent quarterly distributions.
Polus has steadily expanded its global footprint. Following its strong performance in Europe, the firm launched its first U.S. CLO in 2024, signalling a strategic shift to a global platform.
The company has raised over $1 billion in capital for CLO-related investments across both regions since 2014.
The PLI III fund is the largest CLO equity capital raise in Polus’ history, underscoring institutional investor confidence in the firm’s leveraged credit strategy.
Polus’ Leveraged Credit team has invested around $21 billion across more than 2,100 syndicated leveraged loans and maintains exposure to over 500 issuers across the U.S. and Europe.
With €425 million in fresh capital, Polus aims to further scale its CLO issuance while maintaining a focus on delivering strong risk-adjusted returns.
The raise comes amid continued demand for high-yield, diversified exposure in the private credit market, as investors seek alternative sources of income.
Business News Asia