The C$295 billion ($241 billion) British Columbia Investment Management Corp.-backed Brinley Partners L.P. is launching a collateralized loan obligation funded with $4 billion from an unidentified insurance company.
According to the private credit investment manager, the CLO, seeded in 2021 by BCI’s Principal Credit Fund, is planned to be the first in a series of rolling vintages, starting with a $1 billion investment vehicle. Rolling vintages tend to focus on deploying and managing investments, rather than raising capital.
Brinley targets middle- and upper-middle market large–cap companies in the defensive sectors. According to the firm, its first flagship fund, Brinley Private Debt Fund I, closed in 2021 with approximately $3 billion of total capital.
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“Brinley has demonstrated successful execution and delivered strong results for BCI,” Daniel Garant, BCI’s global head of public markets, said in a statement. “We’re thrilled to see Brinley secure this US$4 billion commitment to extend their offering into the CLO market.”
According to Brinley, the CLO will seek to provided capital to mid–market and large–cap insurance sector companies, focusing on businesses with high barriers to entry, “compelling” industry fundamentals, and revenue visibility or predictability, among other indicators.
CLO investments have been growing in popularity in recent years, particularly among publicly filing life insurers, which increased their CLO assets by $14 billion during 2024, according to credit data and intelligence provider Octus. That makes up just part of $250 billion invested by the insurance industry. CLOs also now account for 6.06% of life insurers’ portfolios, up from 5.82% the previous year, the data provider reported.
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Tags: BCI, British Columbia Investment Management Corporation, CLOs, collateralized loan obligation
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