OFS CLO Management II, LLC

OFS CLO Management II, LLC acts as a collateral manager for CLOs, selecting and managing portfolios of leveraged loans. CLOs are structured finance vehicles that issue rated debt and equity tranches backed by loan pools, and the firm is responsible for ongoing portfolio surveillance and reinvestment decisions. This role is similar to that of a credit asset manager rather than an investment banker.

OFS CLO Management II, LLC is part of the OFS Capital family, which includes OFS Capital Corporation (NASDAQ: OFS), a publicly traded business development company. The firm may share investment professionals or resources with other OFS entities, though each CLO management LLC is typically a separate legal entity defined by its CLO offering documents.

The firm's CLO portfolios generally consist of senior secured leveraged loans, which are floating-rate debt instruments issued by middle-market or large corporate borrowers. These loans are typically below investment grade and are syndicated in the broader loan market. The firm does not typically invest in distressed debt or special situations, focusing instead on high-yield performing credits.

CLO tranches are sold to institutional investors such as pension funds, insurance companies, asset managers, and banks. Senior tranches are typically purchased by risk-averse investors seeking investment-grade yields, while equity tranches attract investors seeking higher return potential from residual cash flows.

The firm is registered as an investment adviser with the SEC, subjecting it to regulatory oversight under the Investment Advisers Act of 1940. CLO vehicles themselves are exempt from the Investment Company Act through the Section 3(c)(7) exemption, but the manager's activities are regulated. Compliance reports and Form ADV filings are accessible via the SEC's IAPD database.