Europe: Biagosch joins Portfolio Value Creation group at CPPIB

Maximilian Biagosch has joined the CPP Investment Board as a senior principal in the Portfolio Value Creation group (PVC), according to market sources. The role is an operational one focusing on the day-to-day management of the private equity and infrastructure assets acquired by the firm.

The new role is a continuation of Biagosch’s previous role at Permira Advisors, where he worked for seven years, most recently as head of the Financing Group. At CPPIB he joins former Permira colleague Paul Mullins, who is now global head of the PVC group.

As of Sept. 30, 2014, Toronto-headquartered CPPIB had CAD$234 billion of capital under management globally, with other offices in New York, London, Hong Kong, and Sao Paulo. The London office has 84 employees (as of Sept. 30), working across CPPIB’s three investment departments: Private Investments, Public Market Investments, and Real Estate Investments. – Sarah Husband

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Lloyds appoints four to leveraged loan market team

Lloyds today announced four appointments to its loan market team, with Alaric Fountain-Barber and Alessandro Valenti joining the firm’s leverage debt capital markets business.

Fountain-Barber, who was most recently at Barclays Capital, is understood to have started at the U.K. bank today as a director. He has previously worked in leveraged finance roles at Societe Generale CIB and UBS.

Valenti has made an internal move from Lloyd’s corporate capital structure advisory team to its leverage finance business. Previously, he has worked as a structured finance analyst at Fitch.

Both Fountain-Barber and Valenti report to Carlo Fontana, head of leverage debt capital markets.

Elsewhere in the Lloyds loan team, Nadia Jalal has moved internally from the global corporates relationship team to become an associate within the corporate loan capital markets business, while Ab Shome has joined the bank from RBS as a director on the loan markets real-estate team. – Nina Flitman


European leveraged loan volume hits post-crash record €78B in 2014

European leveraged loan volume
Europe’s leveraged loan market headed into 2015 in a robust and optimistic mood, despite having encountered bouts of volatility in the latter part of 2014.

New-issue volume for the European leveraged loan market stacked up to €78.4 billion in 2014 – up 17% from the previous year, and the highest reading since 2007 – and the prospect is set fair for further growth in the year ahead.

Last year’s increase can all be attributed to the growth of the institutional market, which consumed €49 billion of new paper, as the European CLO 2.0 market re-established itself as a key part of the overall loan investor base, and a raft of other buyers stepped up their appetite for the product over the course of the year. – Ruth McGavin, Sarah Husband, Luke Millar,


LMA Survey: European CLO issuance likely €10-15B in 2015

The LMA today released the results of its survey on the outlook for the syndicated loan market over the next 12 months. A summary of the key points follows, and the survey can be found here.

Competitive pressure in the market, and global geopolitical and/or economic risks, are the top-two respectively when it comes to factors people think will most influence the syndicated loan market over the next 12 months, according to the survey, while corporate M&A, followed by refinancings, are likely to present the best opportunities over the same timeframe.

As for syndicate loan volume expectations, just under half those surveyed believe there will be an up to 10% increase in volume, and 42% think it will be unchanged. Meanwhile, 47% forecast CLO issuance volumes will be in the €10-15 billion range.

Looking back at this year, increased investor appetite is identified as the greatest influence on secondary market liquidity, according to the poll. Sticking with secondary, 45% of respondents expect buyside appetite will not be matched by primary supply, and that liquidity will be deal-specific next year.

When it comes to the main barrier to developing market lending at the present time, the LMA found a close split between those citing legal uncertainty and inconsistent regional integration, while the primary factor driving developing market investment is widely seen to be the search for yield.

The survey garnered a disparity of views on where the property cycle is in Europe, while it found debt funds are likely to demonstrate the greatest growth in real-estate lending in 2015. – Staff Reports


CLO roundup: Pricing schedule stays busy as European spreads widen

CLO roundup 2014-11-10 chart 3

Last week was an active one for the U.S. as market players looked to price CLO transactions ahead of the shortened Thanksgiving week. In Europe, meanwhile, November saw its first two pricings last week ahead of what could be a busy push into year-end. The big question, however, is whether widening liability spreads in Europe will lead some issuers to put transactions on hold until 2015.

Global issuance stands at $130.77 billion, according to LCD.

LCD subscribers can click here for full story, analysis, and the following charts:

  • Deal pipeline
  • US arbitrage CLO issuance and institutional loan volume
  • European arbitrage CLO issuance and institutional loan volume

– Sarah Husband

Follow Sarah on Twitter for the latest CLO market news and insight.