Lakemore Partners Ltd. and Aegon Asset Management have expanded their strategic partnership, aiming to grow their collateralized loan obligation (CLO) investing and management businesses.

The companies reported that they have worked together on CLO issuance since 2023, and the new agreement is intended to help both firms scale assets and broaden distribution to institutional clients. As part of the plan, Lakemore is set to take meaningful equity stakes in Aegon Asset Management’s new U.S. CLO deals over the next several years.

Ahmed Farid, Chairman and CEO of Lakemore, said, “This partnership represents a new investment initiative for Lakemore. By partnering with Aegon AM and its world-class credit platform, we are building the foundation to scale our investment platform to $12 billion in assets under management and $30 billion in senior loan exposure over the coming years. We see this as a long-term strategic relationship that will expand what we can offer our investors and create value for both firms.”

Aegon AM’s 2023–2025 vintage CLOs have delivered outstanding results, building par and limiting software exposure to mid-single digits, a notable positioning advantage as the sector navigates an AI-driven evolution, according to BofA Global Research.

Beyond investing alongside new deals, the firms said they want to work together on product design and distribution, with an emphasis on joint development and cross-platform coordination. According to Portfolio-adviser, the expanded partnership is meant to support Aegon Asset Management’s U.S. CLO issuance ambitions while giving Lakemore a larger role alongside a global credit platform.

Chris Thompson, CEO of Aegon Asset Management U.S., said, "We are pleased to engage in this strategic partnership with Lakemore, one of the most respected and dedicated investors in the U.S. CLO asset class. This alliance strengthens Aegon AM’s position as a leading CLO manager and creates meaningful opportunities for growth across our platform. Together, we expect to deliver compelling outcomes for our respective investors and partners."

Several other firms have recently expanded strategic partnerships and closed new issuance deals for CLOs to broaden distribution, raise equity capital, and scale operations. 

Earlier this month, Benefit Street Partners, Franklin Templeton’s private credit specialist investment manager with $93 billion in assets under management, closed its CLO 50 with $500 million. 

In April, CVC Credit announced the final close of its CVC CLO Equity IV with $1 billion in commitments. The vehicle will be used to make equity investments in CVC-managed CLOs issued in the U.S. and Europe.

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