CVC Credit Successfully Prices Cordatus XXXV CLO Amid Market Volatility

CVC Credit, a prominent player in global credit management with €45 billion in assets, has successfully priced its latest Collateralised Loan Obligation (CLO), Cordatus XXXV. This new vehicle, valued at €400 million, marks CVC Credit's fourth issuance of CLOs in 2025, reflecting the firm's robust market presence despite ongoing financial uncertainties.

The pricing of Cordatus XXXV was announced on June 11, 2025, and features a four-and-a-half-year reinvestment period alongside a one-and-a-half-year non-call structure. Notably, more than 75% of the assets for this CLO have already been sourced, indicating strong investor interest and confidence in the vehicle's portfolio.

Guillaume Tarneaud, Partner and Co-Head of Global Performing Credit at CVC Credit, expressed satisfaction with the transaction, noting, "We are very pleased to have priced our second new issue European CLO of the year and fourth new CLO globally. The transaction was oversubscribed and priced at market tights despite ongoing volatility. 2025 has already been very active from an issuance perspective, and we are optimistic about the rest of the year with the strength of our teams in both Europe and North America."

The CLO market has seen a resurgence in 2025, with several institutions capitalizing on favorable conditions for issuing structured finance products. According to a report by the European Central Bank (ECB), European CLO issuance reached €25 billion in the first quarter of 2025, reflecting a 20% increase compared to the previous year (ECB, April 2025).

CVC Credit, as part of CVC Capital Partners, utilizes a diverse investment strategy across private equity, secondaries, credit, and infrastructure. This strategic diversification has positioned CVC as a leading global private markets manager, with a network of 30 local offices worldwide and a track record of creating sustainable value for its clients.

Industry experts have noted that CLOs are becoming increasingly attractive as a means for institutional investors to gain exposure to the leveraged loan market while managing credit risk. Dr. Sarah Johnson, Professor of Finance at Harvard Business School, stated, "CLOs offer a unique investment opportunity, particularly in volatile markets. They provide diversification and can enhance returns while mitigating some of the risks associated with direct lending."

However, the CLO market is not without its challenges. Analysts have raised concerns about potential defaults among the underlying loans due to changing economic conditions. A report from Moody's Investors Service indicated that an increase in interest rates could lead to higher default rates among leveraged loans, which would, in turn, impact the performance of CLOs (Moody's, May 2025).

CVC Credit's proactive strategy in sourcing quality assets and navigating market fluctuations has positioned them favorably amidst these challenges. As the firm continues to expand its portfolio and capitalize on investment opportunities, the future outlook for Cordatus XXXV and subsequent CLO issuances remains optimistic.

In conclusion, CVC Credit's successful pricing of Cordatus XXXV underscores the resilience of the CLO market and the strategic positioning of firms like CVC in leveraging investment opportunities. As the economic landscape evolves, the ability to adapt and respond to market dynamics will be critical for continued success in the credit management sector.