The CLO Investor Podcast #21, Brian Nolan, Head of European CLO Structuring, PGIM
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Jun 30, 2025 
Brian Nolan, Head of European CLO Structuring at PGIM, shares his expertise on the nuances of European CLOs versus their U.S. counterparts. He discusses the complexities of structuring these financial instruments, emphasizing regulatory impacts and the importance of collaboration. Nolan also highlights the challenges European investors face, including access and ESG considerations. Furthermore, he simplifies key financial terminology, covering developments like the shift from LIBOR to SOFR and discusses risk management strategies within the CLO landscape.
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European CLO Equity Ownership Structure
- Most European CLO managers use captive equity funds to hold retention, with only 5-10 managers relying on third-party equity.
- PGIM is a minority manager fully using third-party equity at about 95% sold externally.
Global Investor Base in European CLOs
- European CLO equity investors are roughly split 50-50 between US and European investors.
- AAA and senior CLO debt buyers often come from Asia and the US, with full currency hedging typically applied.
Changing Views on CLO Pool Safety
- US CLO pools have historically been viewed as safer and more diversified than European ones.
- Recent macro events are shifting investor sentiment towards diversifying with European CLO exposure.