Ballyrock Investment Advisors manages investments for various structured credit vehicles, including collateralized loan obligations (CLOs). Ballyrock selects the assets to be acquired, invests and reinvests the assets, and instructs the trustee regarding investments. Ballyrock may negotiate hedge agreements and securities lending arrangements. Ballyrock's affiliate, Fidelity Management & Research Company LLC (FMR), provides personnel and sub-advisory services. Fidelity CLO Advisers LP is a relying adviser of Ballyrock.
Fee Structure
Ballyrock manages investments for CLOs and charges a fee that includes three parts:
- A base fee (senior management fee)
- A subordinated fee
- An incentive fee (based on performance)
The base fee and subordinated fee are percentages of the assets managed and are paid quarterly. The incentive fee is paid only if the CLO's subordinated noteholders reach a specific internal rate of return.