Royal London Asset Management prices upsized €450m Hambridge Euro CLO III after strong investor demand

Royal London Asset Management has priced Hambridge Euro CLO III at €450 million, upsizing the deal from an initial €400 million target after strong demand from investors across Europe and North America.

The transaction attracted 27 investors, combining repeat support from existing Hambridge investors with new buyers to the programme. It is Royal London Asset Management’s third Hambridge CLO, following Hambridge CLO I in September 2025 and Hambridge CLO II in March 2026.

The transaction comes during a resilient year for European CLO issuance, with institutional investors continuing to seek floating-rate income, structural diversification and actively managed exposure to corporate loans. For Royal London Asset Management, Hambridge forms part of the continued build-out of its leveraged finance and structured credit capabilities.

Market conditions remain selective, with investors differentiating closely between managers based on collateral quality, track record and execution. The upsize and breadth of participation in Hambridge Euro CLO III demonstrates the strength of investor demand at a time when manager credibility remains central to CLO placement.

The programme gives investors the opportunity to invest across different parts of the CLO capital structure, from senior-rated debt to higher-returning tranches, depending on their risk and return objectives.

Sebastien Poulin, Head of Leveraged Finance Research, Royal London Asset Management, said:

“We have been deliberate in building Hambridge as a scalable CLO platform, with a strong focus on credit selection, portfolio construction and consistency across transactions. The breadth of participation from 27 investors across Europe and North America, including both existing and new investors, reflects the growing depth of support for the platform and gives us a strong foundation for its continued development.”

Khuram Sharih, Senior Fund Manager, Royal London Asset Management, said:

“CLO investors are being selective. They are scrutinising collateral, portfolio construction, documentation, manager track record and execution across the capital structure. Pricing a third upsized transaction since late 2025 is encouraging and underscores the role CLOs can play for investors seeking diversified, floating-rate exposure to European corporate credit.”

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Notes to editors

Hambridge Euro CLO III was arranged by Morgan Stanley.
Legal advisers to Hambridge were Paul Hastings (Europe) LLP and Walkers (Ireland) LLP.

The views expressed are those of the author at the date of publication unless otherwise indicated, which are subject to change, and is not investment advice