Lord Abbett CLO Management acts as an investment manager for pooled investment vehicles called collateralized loan obligations (CLOs). They also provide advisory services to warehouse facilities that acquire loan assets before a CLO securities offering. Lord Abbett CLO Management's investment advice is primarily limited to selecting and managing a CLO's assets, subject to restrictions in the CLO's governing documents. The firm's clients are generally institutional investors.
Fee Structure
Lord Abbett CLO Management receives compensation for advisory services through fees paid by their clients, which are CLOs and CLO Warehouses. For CLOs, they typically receive a collateral management fee, consisting of a senior and subordinated fee. They may also receive performance-based compensation based on the cash distributions made by the CLOs, subject to a preferred return hurdle. For CLO Warehouses, they may receive customary management fees, structuring fees, and/or warehouse success fees. The specific fees and expenses vary from client to client and are detailed in the client's governing documents.