WASHINGTON (dpa-AFX) - Invesco Ltd. (IVZ) has entered into an agreement to sell the majority of its European CLOs to 3i Debt Management for undisclosed terms. The sale is limited to the management contracts for seven of eight European CLOs with total assets of euro 2.0 billion. The sale proceeds would be used to support Invesco's new issue CLO business in the U.S. and non-CLO loan funds in Europe.
Greg Stoeckle, head of Invesco's Bank Loan business said, 'We are highly committed to CLOs as one of the three cornerstones of our loan business. Post transaction we will continue to manage 16 CLOs totalling $5.3 billion in assets under management and expect to retain a leadership position in the CLO market.'
Invesco's Bank Loan team, with operations in New York, Chicago and London, would remain at the current level of 29 investment professionals. Pro-forma for this transaction, Invesco would retain some $14.5 billion of bank loan assets split fairly evenly between its floating rate retail mutual funds, CLOs and, non-CLO institutional loan funds.
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