Nuveen CLO Issuance Fund closes with over $375 million

NEW YORK, April 4, 2022 /PRNewswire/ -- The Nuveen CLO Issuance Fund, LP (the "Fund") has closed with over $375 million in committed capital from global public and private pension plans, family offices and insurance companies. The Fund provides the opportunity to invest alongside Nuveen's parent company, TIAA, the #1 not-for-profit retirement market providerⁱ with nearly $1.4 trillion in assets under management ⁱⁱ. The Fund provides exposure primarily to the controlling or majority equity interests of multiple Nuveen new issue CLOs and CLO warehouses, as well as opportunistic holdings in legacy Nuveen CLO debt and equity tranches, via a private placement, commingled fund structure.

"The closing of our inaugural CLO equity fund is core to our mission of delivering compelling risk adjusted returns for our clients through a nimble and opportunistic approach. Over the coming months, the market will be seeing a lot more from the Nuveen leveraged finance team," said Scott Grace, Head of Nuveen's leveraged finance platform. "Since holding its initial close in August 2020, the Fund has quickly scaled, investing capital into the equity stakes of multiple new-issue Nuveen CLOs, CLO warehouses as well as debt and equity tranches of legacy Nuveen CLOs through the secondary market. The Fund capitalized on favorable conditions in the new issue CLO market, while taking advantage of market volatility by engaging in opportunistic trades in the secondary market on a selective basis."

For over 15 years, including during the 2008-09 Global Financial Crisis and 2020 COVID-19 downturn, Nuveen's retired CLOs have delivered an average net internal rate of return of over 20% to investors and have never missed an equity distribution due to an overcollateralization test failureⁱⁱⁱ. We believe this performance can be attributed to actively managing credit risk and identifying the catalysts of both credit deterioration and, conversely, attractive total return.

"Our differentiated approach has been cycle tested and proven via our performance track record, active par building and consistent liability management, all while actively managing tail risk," said Himani Trivedi, Head of Structured Credit and Lead Portfolio Manager for Nuveen leveraged finance issued CLOs and its investments in third-party managed CLOs with almost two decades of experience investing in CLO markets. "These qualities have enabled Nuveen to consistently achieve some of the best new issue cost of liabilities compared to our peers, including in the CLOs in which the Fund has deployed capital thus far."

Nuveen's leveraged finance platform is one of the industry's largest and best resourced providers of high yield credit, broadly syndicated loans, CLOs and alternative credit strategies. The leverage finance team of 50+ investment professionals oversees $38 billion in AUM, including $11 billion in CLO AUM and has closed 33 CLOs in the past 15 years, providing clients with enhanced access to an asset class where scale, research depth and a focus on active management are critical to producing better results. As part of the broader Nuveen global fixed income platform, the leveraged finance team has access to substantially additive resources across various asset classes, which provides the team a holistic view of global fixed income markets. Additionally, the organization's long history of investing meaningfully alongside our clients ensures strong alignment with their interests. 

Nuveen, the investment manager of TIAA, offers a comprehensive range of outcome-focused investment solutions designed to secure the long-term financial goals of institutional and individual investors. Nuveen has $1.3 trillion in assets under management as of December 31, 2021 and operations in 27 countries. Its investment specialists offer deep expertise across a comprehensive range of traditional and alternative investments through a wide array of vehicles and customized strategies.

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ⁱ As of Dec. 31, 2020. Based on data in PLANSPONSOR's 403(b) Market Survey, which published in August 2021.
ⁱⁱ As of December 31, 2021 assets under management across Nuveen investment affiliates and TIAA investment management teams were $1,375 trillion.
ⁱⁱⁱ Past performance is not a guarantee or a reliable indicator of future results. Average net IRRs are based on distributions to equity tranches net of fees and expenses. All starting cash flows use the cash outlay as described in their respective offering documents. The internal rate of return on an investment is the annualized compounded rate that was earned on the original capital since inception as defined by the offering documents. of payments missed. Cash flow data assume the equity was purchased at par and give no credit for net asset value (NAV) in active deals. Therefore, these figures may be biased toward an underestimation of actual realized returns for investors who purchased equity at a discount or for those outstanding deals with high portfolio NAVs. Certain vintages may contain small samples; therefore, the data might be skewed, and medians may be artificially low or high based on outliers.

Notice to persons in Australia: These materials are solely for use with wholesale clients as defined  in section 761G of the Corporations Act 2001 (Cth) and are issued by Nuveen Australia Pty Ltd ACN 604 071 696, which is a corporate authorised representative of Nuveen Real Estate (Australia) Limited ABN 98 106 690 444, AFSL 460770.

Notice to persons in Canada: These materials are solely for use with permitted clients. This supplemental material relating to the fund or funds described herein are for use only in those jurisdictions and to those persons to whom they may be lawfully offered for sale, and therein only by persons permitted to sell such securities. These materials are not, and under no circumstances is to be construed as, an advertisement or a public offering of the securities described herein in Canada. No securities commission or similar authority in Canada has reviewed or in any way passed upon this document or the merits of the securities described herein, and any representation to the contrary is an offence.

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Notice to persons in Hong Kong: This material is for distribution to "Professional Investors" (as defined in the Securities and Futures Ordinance (Cap.571 of the laws of Hong Kong) and any rules made under that ordinance) and should not be relied upon by any other persons or redistributed to retail clients in Hong Kong.

This information is issued and distributed by Nuveen Hong Kong Limited (BJH146) and has not been reviewed by the Securities and Futures Commission of Hong Kong.  Hong Kong residents are advised to exercise caution in relation to this offer. An investment in the Fund may not be suitable for everyone. If you are in any doubt about the contents of these materials, you should consult your stockbroker, bank manager, solicitor, accountant or other financial adviser for independent professional advice.

The Fund is not authorised by the Securities and Futures Commission ("SFC") in Hong Kong pursuant to Section 104 of the Securities and Futures Ordinance (Cap 571, Laws of Hong Kong) ("SFO"). These Confidential Offering Materials have not been approved by the SFC in Hong Kong, nor has a copy of it been registered with the Registrar of Companies in Hong Kong and, must not, therefore, be issued, or possessed for the purpose of issue, to persons in Hong Kong other than (1) professional investors within the meaning of the SFO (including professional investors as defined by the Securities and Futures (Professional Investors) Rules); or (2) in circumstances which do not constitute an offer to the public for the purposes of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap 32, Laws of Hong Kong) or the SFO. These Confidential Offering Materials are distributed on a confidential basis and may not be reproduced in any form or transmitted to any person other than the person to whom it is addressed. No interest in the Fund will be issued to any person other than the person to whom this these materials have been addressed and no person other than such addressee may treat the same as constituting an invitation for him to invest.

Notice to persons in Singapore: These materials are solely for use with institutional investors. This information is distributed by Nuveen Hong Kong Limited (BJH146) and has not been reviewed by the Securities and Futures Commission of Hong Kong.  Any Fund and the offer, or prospective offer, of Shares which are the subjects of these materials do not relate to a collective investment scheme which is authorised under section 286 of the Securities and Futures Act (Cap. 289) (the "SFA") or recognised under section 287 of the SFA, and any Shares of the Fund are not allowed to be offered to the retail public.

These materials or any other fund document issued in connection with the offer or sale of Shares is not a prospectus as defined in the SFA. These materials and any fund document issued in connection with any offer or sale of Shares have not and will not be lodged or registered as a prospectus with the Monetary Authority of Singapore ("MAS"). Accordingly, statutory liability under the SFA in relation to the content of prospectuses does not apply.

Potential investors should carefully consider whether an investment in a Fund is suitable for them. The MAS assumes no responsibility for the contents of these materials or any other fund-related documents issued in connection with the offer or sale of any Shares or prospective Shares.

These materials as well as any fund documents in connection with any offer of, or invitation to subscribe for or purchase Shares or prospective Shares may not be, directly or indirectly, issued, circulated or distributed in Singapore, and any Shares or prospective Shares may not be, directly or indirectly, offered or sold, or made the subject of an invitation for subscription or purchase, in Singapore, except: (i) to institutional investors (as defined in section 4A of the SFA) in accordance with section 304 of the SFA; (ii) to a relevant person (as defined in section 305(5) of the SFA) in accordance with section 305(1) of the SFA; (iii) in accordance with section 305(2) of the SFA; or (iv) otherwise pursuant to, and in accordance with the requirements of any other exemption under subdivision (4) of division 2 of part XIII of the SFA or of any other applicable provisions of the SFA.

These materials should not be construed as investment advice and if you do not understand the contents of these materials you should consult an authorized financial adviser.

Notice to persons in Switzerland: These materials are solely for use with qualified investors. The distribution of Interests of the Fund in Switzerland will be exclusively made to, and directed at, regulated qualified investors (the "Regulated Qualified Investors"), as defined in Article 10(3)(a) and (b) of the Swiss Collective Investment Schemes Act of 23 June 2006, as amended ("CISA"). Accordingly, any Fund organized under the laws of a foreign jurisdiction would not be registered with the Swiss Financial Market Supervisory Authority ("FINMA") and no Swiss representative or paying agent have been or will be appointed in Switzerland. These offering materials and/or any other offering materials relating to the Interests of the Fund may be made available in Switzerland solely to Regulated Qualified Investors. These materials are confidential and may not be reproduced in any form or transmitted to any person other than to whom these materials have been addressed. 

Issued by the offices and branches of Nuveen Alternatives Europe Sarl (reg. no. A00002440) or Nuveen Asset Management Europe Sarl (reg. no. P00000482), incorporated and registered in Luxembourg with registered office at 4A Rue Henri M Schnadt – 2530 Luxembourg; Both of which are authorised by the Commission de Surveillance des Services Financiers to provide investment products and services. Please note that branches of Nuveen Alternatives Europe Sarl or Nuveen Asset Management Europe Sarl are subject to limited regulatory supervision by the responsible financial regulator in the country of the branch.

Notice to persons in the UK: Issued by Nuveen Investment Management International Limited (reg. no. 2137726); (incorporated and registered in England and Wales with registered office at 201 Bishopsgate, London EC2M 3BN), authorised and regulated by the Financial Conduct Authority to provide investment products and services.

These materials are solely for use with (i) persons who are "Investment Professionals" as defined in Article 19(5) of the UK Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the "Financial Promotion Order"); (ii) persons falling within any of the categories of persons described in Article 49 ("high net worth companies, unincorporated associations, etc.") of the Financial Promotion Order; and (iii) any other person to whom it may otherwise lawfully be distributed in accordance with the Financial Promotion Order. The investment opportunities described in this document are available only to such persons; persons of any other description in the United Kingdom should not act or rely upon the information in this document.

Notice to persons in Uruguay:  These materials are solely for use with  professional  investors. Any shares referenced in these materials related to any fund, or prospective fund, are not, nor will be, available publicly and are offered only on a basis which constitutes a private placement in Uruguay. As such, any fund shares referenced are not required to be, and will not be, registered with the Central Bank of Uruguay nor constitute an investment fund regulated by Uruguayan law 16,774 dated September 27, 1996, as amended.

SOURCE Nuveen