The credit investment unit of Bain Capital LLC, Sankaty Advisors LLC, had begun raising its first fund focused on collateralized loan obligations. This was reported by an anonymous source with knowledge of the program.

The Sankaty CLO Partners I Fund had raised US$160 million and further rounds can expect the funding to reach as high as US$300 million. The funds are seeking to deliver double digit returns yearly through equity investments and other CLOs.

This Sankaty's newest project to expand its credit investment offerings as CLOs again becomes investment opportunities in the US as well as the reopening of Europe to these kinds of instruments. 

The London spokesperson for Sankaty Ed Gascoigne Pees declined to make any comment on the matter. 

What CLOs do is put together high yield loand and then cut them into differing debt securities with varied risks and rates of return. The lowest portion is known as the equity tranche would offer the highest potential return and greatest risk.