CLO Market Drives Ireland SPV Growth in 2023
- Published
- in Technical Publications
Further strong growth in the number of Special Purpose Vehicles (SPV) formed in Ireland last year has provided more evidence of the strength of the Irish CLO industry and international finance sector.
Preliminary data from Atlantic Star for 2023 has shown there were approximately 4183 active SPVs at year end in Ireland, representing an annual increase of 4.3%. Growth was reported across all three main market segments, with aircraft leasing vehicles up 22%, CLOs up 21% and credit fund linked SPVs up 12%.
During 2023, there were 431 newly incorporated SPVs across at least 104 different sponsors, which further demonstrates the buoyancy and depth of the CLO market in Ireland. In December, Atlantic’s Irish SPV Report Q3 2023 showed assets held by Irish SPVs moved up to a record level, passing €1.1 trillion for the first time.
Within Irish SPVs, assets primarily consisted of 36.9% debt securities, 19.7% deposit/loan claims and 19.1% securitised loans. On the liability side, debt securities issued rose by €26.4bn (+4.1%) during Q3-2023, which was attributed to both CLO issuance, and the counterpart to the increase in equity holdings.
The Maples Group has maintained its impressive market position for SPV formation in Ireland. From our internal transaction data, the Maples Group acted on approximately 25% of new Section 110 SPVs in 2023.
“These figures certainly reflect the increased business activity we are seeing from our clients, particularly on the CLO side, where Ireland continues to cement its position as the jurisdiction of choice for CLOs in Europe,” said Jarlath Canning, Senior Vice President in the Maples Group’s Ireland fiduciary team.
The Maples Group is the longest established international firm specialising in CLOs in Ireland. We provide fiduciary services to the world’s leading CLO managers, alongside fully integrated legal, entity management, compliance and fund services. If you would like to discuss any aspect of your next CLO, please reach out to your usual Maples contact or any of the professionals below.
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