CarVal Investors Launches Clean CLO Product Line


MINNEAPOLIS, July 23, 2021 /PRNewswire/ — CarVal Investors, an established global alternative investment manager, today announced the launch of the CarVal Clean CLO platform. The CLOs managed by the platform will utilize a new ESG risk assessment technology to pursue a high-performing, ESG-optimized portfolio which will be driven by proprietary technology developed by CarVal Investors and Insig AI, a data science and machine learning solutions company. This technology is the first of its kind in fixed income and will cover private as well as public issuers, creating a transparent and auditable risk assessment that allows for comparison to relevant benchmarks. 

“The creation of this ESG-compliant platform will expand our CLO offerings to include CLOs that will be managed using our proprietary ESG risk assessment methodology,” said Lucas Detor, a managing principal of CarVal Investors. “At CarVal, we believe ESG risks can have a material impact on the performance of credit investments. This new model will enable us to measure ESG risk at an issuer and portfolio level to create a unique and attractive product for investors. Ultimately, we believe this strategy aligns with our long-term goals of reducing the cost of capital for ESG-minded companies by creating an independent, auditable and comparable risk assessment model.”

“CLOs were tested through the crucible of the global pandemic-led recession, proving once again the power and robustness of the product structure,” said Chris Mawn, who leads the corporate loans team at CarVal Investors. “What has emerged is a $1 Trillion global CLO market with investors in search of greater ESG integration and transparency. We are launching this new platform to meet this emerging need with the mantra of doing good and doing well without sacrificing returns.”

CarVal’s ESG risk assessment model measures each asset on six themes:

  1. Climate Change, including carbon emissions and carbon footprint
  2. Natural Capital, including raw material sourcing and water stress
  3. Pollution, including toxic emissions and waste
  4. Human Capital, including health and safety and labor management
  5. Product Liability, including product safety and consumer financial protection
  6. Corporate Governance, including ownership and board

These measurements are then utilized to create a composite ESG risk assessment that is then comparable at an individual credit and portfolio level.

“We are excited to be working in collaboration with CarVal to support the launch of this ground-breaking product line,” said Steve Cracknell, CEO of Insig AI. “This launch underscores the powerful role that our innovative ESG scoring and interrogation tool can play in enabling asset managers to develop and execute a data-led ESG investing strategy.”

About CarVal Investors

CarVal Investors is an established global alternative investment manager focused on distressed and credit-intensive assets and market inefficiencies. Since 1987, CarVal’s team has navigated through ever-changing credit market cycles, opportunistically investing $128 billion in 5,525 transactions across 82 countries. Today, CarVal Investors has approximately $10 billion in assets under management in corporate securities, loan portfolios, structured credit and hard assets. For more information, visit www.carvalinvestors.com.

About Insig AI

Insig AI (www.insg.ai) is a data science and machine learning solutions company serving the asset management industry. The Company has developed five products; Insig Portfolio, Insig ESG, Insig Data, Insig Docs and Insig Exceleton, which allow investment professionals to get the most out of their data, through applying cutting-edge machine learning techniques, elastic database and cloud-computing technology. The Company is head quartered in London, UK, and listed on London Stock Exchange AIM.

CONTACT:           Ann Folkman, CarVal Investors

ann.folkman@carval.com

+1 952 444 4869

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SOURCE CarVal Investors

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