RBC GAM Launches Interval Fund Targeting CLO Credit Opportunities
RBC Global Asset Management (U.S.) Inc. has launched the RBC BlueBay Enhanced Income Fund, a closed-end interval fund aimed at expanding investor access to alternative credit markets through collateralized loan obligations (CLOs).
The actively managed fund will primarily invest in equity and junior debt tranches of CLOs, with additional flexibility to allocate to other structured credit securities. CLO tranches are backed by diversified pools of corporate loans, typically rated BB and B, offering exposure to below-investment-grade credit with potential yield enhancement.
The strategy will focus predominantly on U.S. CLO opportunities, while maintaining the ability to allocate to European markets. The launch marks a continued buildout of RBC GAM’s alternative investment platform for intermediary and retail investors seeking income-oriented solutions beyond traditional fixed income.
“We anticipate continued adoption of semi-liquid vehicle structures such as interval funds and see them as a significant area of growth for our U.S. business,” said Donald Sanya, CEO of RBC Global Asset Management-U.S.
The fund is managed by BlueBay’s securitized credit and CLO management team, including portfolio managers Mark Shohet, Ajeet Atwal and Sid Chhabra.
Shohet highlighted the return potential of the asset class, noting that CLO equity may benefit from widening asset spreads while locking in long-term financing costs.
Destra Capital Advisors LLC will serve as a distribution partner and provide consulting services to RBC GAM.
