New CLO vehicle targets defensive-sector debt with flexible structures tailored to insurance capital
Brinley Partners, LP has secured US$4bn from a major US insurance company to launch its first collateralized loan obligation (CLO), marking a shift into structured credit markets.
The inaugural US$1bn vehicle will be the first in a planned series of rolling CLO vintages.
The CLO will follow Brinley’s strategy of offering capital solutions to mid- and large-cap companies in defensive sectors.
Target firms will include those with high barriers to entry, consistent revenue visibility, and strong fundamentals.
The structure also allows for flexibility to include various debt products tailored to insurance capital requirements.
Brinley was initially seeded by British Columbia Investment Management Corporation’s (BCI) Principal Credit Fund.
Since 2021, BCI has committed or agreed to commit over US$2.5bn to Brinley.
Daniel Garant, executive vice president and global head of Public Markets at BCI, said BCI first invested in Brinley in 2021 after assessing the strategy developed by the company’s founder, Kerry Dolan, and the demand for corporate private debt.
He noted that since then, Brinley has executed on its strategy and generated returns for BCI.
Garant said Brinley’s US$4bn commitment supports the firm’s extension into the CLO market.
He described the transaction as significant for Brinley and its equity partners, including BCI, and noted that BCI will continue its partnership with the firm.
Brinley closed its first flagship fund, Brinley Private Debt Fund I LP, in 2021 with about US$3bn in total capital, including leverage.
The firm lends to high-quality companies in the middle-market, upper-middle market, and large-cap segments.
“Our inaugural CLO is a natural extension of our credit platform, and welcoming a new strategic partner marks a meaningful milestone in Brinley’s continued evolution and the growth of our firm,” said Dolan.
BCI had $295bn in gross assets under management as of March 31.
