Overview
Fair Oaks Income Fund says the Fair Oaks Income Fund LP (the “Master Fund”) has entered into binding contracts to acquire, in the primary market, $28.0 million notional of equity notes, representing 73% of the total equity, and $8.6m notional of Class F notes of Shackleton 2015-VIII CLO, a new CLO backed by a portfolio of US broadly syndicated, secured loans.
The manager of this CLO’s portfolio is Alcentra, an asset manager with $25 billion of assets under management in loans, bonds and alternative credit investments. Alcentra is wholly owned by the Bank of New York Mellon.
This CLO’s current target portfolio has a principal value of $430 million across an expected 156 unique bank loan issuers, with an expected weighted average exposure per issuer of approximately 0.8%.
The manager estimates that the potential total return for this investment is between 14% and 16% per annum.
Fair Oaks invests in Alcentra CLO