The Last Tranche with New Mountain's Kline and Moshiri

The Last Tranche with New Mountain's Kline and Moshiri: we have more flexibility than a typical CLO around industry selection

In this episode of the Last Tranche, John Kline and Cyrus Moshiri from New Mountain Capital discuss the innovative rated feeder fund structure they recently priced, and why they chose this approach over a traditional middle market CLO.

After explaining the details of how rated feeder funds like Guardian IV Rated Feeder work, Kline explained that one key benefit is of the structure is the increased flexibility it offers on industry diversity. Their chosen structure is a CLO-like product, but that lets them pursue their investment strategy without having to be forced into industries that we don't like as a firm.