CLO Demand Continues To Drive SPV Formation In Ireland

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The Maples Group is a leading service provider offering clients a comprehensive range of legal services on the laws of the British Virgin Islands, the Cayman Islands, Ireland, Jersey and Luxembourg, and is an independent provider of fiduciary, fund services, regulatory and compliance, and entity formation and management services.

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Strong demand for CLOs has continued to drive incorporation of special purpose vehicles in Ireland, with the latest market data demonstrating a solid uptrend over the past year...

Ireland Finance and Banking

Strong demand for CLOs has continued to drive incorporation of special purpose vehicles ("SPV") in Ireland, with the latest market data demonstrating a solid uptrend over the past year, which accelerated sharply in April.

According to the latest report from Atlantic Star Analytics, total active Irish SPVs at the end of April 2024, stood at 4248, which was up 70 or 1.7% from March and an increase of 177 or 4.3% from April 2023.

There were 88 new SPVs incorporated in Ireland in April, outpacing the average rate over the past year, with securitisations accounting for 37 of the total. Active securitisation vehicles increased by 33 during the month of April, which was up 2.2% from March and up 112, or 8.1%, from April 2023. Some 201 new securitisation SPVs were incorporated in Ireland in the year to April 2024 and CLOs accounted for 17.6% of all active Irish securitisation SPVs, with 16 new CLO SPVs incorporated during April.

"We are seeing a consistently solid tone in the primary CLO market this year, as issuers continue to respond to the positive market conditions, mirroring the buoyant picture in the US," said Jarlath Canning, Senior Vice President in the Maples Group's Ireland fiduciary team. "Deals in Europe have been well received by investors and with further refinancing and reset activity anticipated, we expect continued growth over the second half of 2024."

From a corporate services provider perspective, the Maples Group remains the clear market leader in Ireland, acting on 18.3% of total active SPVs. Maples was also the leading provider of company secretary services, accounting for over 20% of total active SPVs in Ireland.

The Maples Group in Ireland is also the market leader in the provision of SPVs for CLOs. "Members of our team recently attended the Global ABS conference in Barcelona and the enthusiasm among delegates there is reflected in the positive deal flow we are seeing here in Ireland," said Stephen McLoughlin, Partner in Maples and Calder's finance practice in Dublin. "In addition to the healthy CLO deal flow, there is strong interest in other products, including the RPL / NPL space, with primary processes continuing to emerge from the banks."

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.

For further information on the Maples Group's global CLO solutions, please click here to see our short video.

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