Temasek-backed Seviora, Churchill Asset Management close US$400 million in collateralised fund obligation

[SINGAPORE] Temasek’s main asset management platform Seviora and Churchill Asset Management announced a close of about US$400 million in a collateralised fund obligation on Monday (Jul 13).

Ken Kencel, president and CEO of Churchill, said: “The offering was oversubscribed, underscoring robust demand for high-quality, diversified private market investments.”

Demand from US insurance companies was high, as these companies were seeking highly rated fixed income investments, said the companies.

The structured product will invest across Seviora’s Asian private credit and global fund-of-funds strategies, as well as Churchill’s US junior capital and private equity secondaries strategies. This aims to provide institutional investors diversified exposure across fund managers.

The collateralised fund obligation is structured with 50 per cent exposure to Seviora and Churchill, selected for key investor objectives including credit exposure, yield enhancement and strategy diversification across the US and Asia.

Collateralised fund obligations are structured financial instruments that securitise a pool of funds, allowing investors to gain diversified exposure to those assets.

“Developing innovative investment solutions for institutional clients requires deep partnerships with like-minded organisations, the ability to bring together complementary capabilities across markets and strategies, and the expertise to structure investments that meet evolving client needs,” said Gabriel Lim, CEO of Seviora.

This follows Temasek’s minority investment in Nuveen Private Capital, as well as committing capital to funds run by Nuveen Private Capital.

Churchill is part of Nuveen, forming a US$99 billion private capital platform with Arcmont Asset Management, and is one of the largest private credit managers in the world. Nuveen is owned by TIAA, a US$1.4 trillion asset manager.

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“We believe the combination of differentiated investment strategies, an investor-friendly structure, as well as the alignment with Churchill’s and Seviora’s parent companies, TIAA and Temasek – two of the world’s largest investors in private debt and equity, respectively – resonated strongly with investors,” said Kencel.