As CLO managers weigh up their retention options, Irish, Jersey and Guernsey domiciled 'originator' style retention vehicles have been gaining popularly with UK CLO managers considering their Brexit strategy where the 'sponsor' route is no longer available. Whilst Irish based CLO managers continue to have the option to proceed via the 'sponsor' route, there are other ways through which Walkers can aid your strategy.
The combination of a Jersey or Guernsey investment fund financing an Irish originator retention vehicle is proving popular for managers establishing risk retention financing platforms. This provides access to Ireland's extensive double tax treaty network for originator vehicles and gives managers scope in terms of capital raising with Jersey and Guernsey being tried and test jurisdictions for IPOs.
Walkers, being the only law firm with offices in Ireland, Jersey and Guernsey, is pleased to be in the unique position to offer Irish, Jersey and Guernsey advice to CLO market participants considering their Brexit strategy.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.