CLOs

Arthur Cox is the principal Irish adviser in the European CLO market, with one of the largest and most experienced legal, tax, corporate administration and listings teams advising on CLO transactions and CLO risk retention structures in Ireland.

We advise on the establishment and structuring of CLO transactions and risk retention platforms for, among others, AEGON, Albacore, Alcentra, Arcano, AXA, BlackRock, Blackstone, Carlyle, Chenavari, Cross Ocean, CVC, Elmwood, Fasanara, Investcorp, KKR, MacKay Shields, LGT, MAN/GLG, Oaktree, Park Square Capital, Partners Group, Permira, Signal Capital, Sound Point and Trinitas. We are also standing legal advisors to the regulated manager entities for Blackstone and KKR, the two principal Irish domiciled collateral managers. This gives us a unique insight into, and understanding of, the key regulatory issues facing collateral managers. This means that we are uniquely placed to identify issues and provide views on a proactive basis.

Ireland continues to dominate the European CLO market, underpinned by a robust legal framework, a well‑established regulatory environment and a highly sophisticated tax regime. Favourable tax rules allow CLO issuer vehicles to operate in a largely tax‑neutral manner, with only a minimal annual profit or “spread” required at SPV level. The quoted eurobond exemption permits interest on securities to be paid gross, and a minimal share capital requirement—€1 in most cases—makes the incorporation of Irish SPVs straightforward and efficient. In addition, Euronext Dublin is a market leader in the listing of debt securities, including CLOs.

Our CLO group brings together legal, tax, listing and corporate services in a fully integrated offering. This includes advising on establishment and issuance, developing bespoke risk retention structures using Irish Section 110 vehicles, structuring efficient risk retention financing solutions through repo SPVs and other fund structures and advising on middle market and private credit CLOs. By providing these services as a single, coordinated offering, we provide an efficient and seamless delivery of service across the full life cycle of CLO transactions.

Our Corporate Services Group adds further depth to our CLO offering. The senior management team has helped establish CLO platforms for over twenty‑five European managers and has worked closely with CLO trustees, collateral administrators and other transaction parties for more than a decade. This enables us to deliver a seamless SPV set‑up, onboarding and KYC process, alongside experienced director, governance, accounting, tax and regulatory compliance support throughout the life of a CLO.