Description of the Business Line or Department
Asset Backed Products (“ABP”) is the centre of expertise and single entry-point for engineering, distribution and trading of securitised products, trade receivables and structured loans. ABP's activity is focused on key clients of SG (corporates, financial institutions, insurance companies and investors in a wide sense, such as private equity, fund managers, specialised funds, hedge funds). ABP has a global presence with teams in Europe, Americas and Asia-Pacific. The longstanding and award-winning expertise on securitised products is built around a skilled team of professionals in structuring, sales/origination, trading and syndication. ABP sits at the heart of the loan and ABS chains encompassing both private and public markets:
· Loan Chain: from loan origination, placement, trading and financing to CLO arrangement, trading and financing
· Securitisation Chain: from ABS warehousing to ABS placement, trading and financing
While linking managers and investors, ABP also ensures a consistent and centralised credit and market risk approach across all securitised products and, by doing so, it optimises the use of scarce resources.
Within the Asset Backed Product platform, the EMEA CLO Primary team is in charge of the CLO chain from origination, warehouse, arrangement to placement of the CLO. The team will closely cooperate with the rest of the ABP and in particular the AIO team in order to maximise hit ratio on CLO mandates.
Summary of the key purposes of the role
The new joiner will be part of the EMEA Primary CLO team and will focus on several important areas of ABP which will enable and foster the growth of the platform over the next years:
i. In a first step, contribute to establishment of the European CLO business in close coordination with the Head of European CLO structuring
ii. In a second step, following establishment of the CLO business, enhance the origination, structuring and distribution capabilities of ABP business with Private Equity sponsors
iii. At all times coordinate with internal stakeholders
Summary of responsibilities
I. European CLO business
Under the supervision of the Head of European CLO structuring, the first objective of the new joiner is to help set-up, define and develop the European CLO business of SocGen. The new joiner will be entirely dedicated in a first step to this objective, which will be accomplished in coordination with ABP stakeholders involved in the project: engineering, trading, syndicate, sales and other business lines and support functions as well as the other geographies (Asia and Amer).
Several key stages have been identified in the European CLO desk creation process:
1. CLO managers mapping
· Contribute to the CLO manager mapping and selection, taking into account client coverage vs revenue, potential for the ABP franchise.
· Monitor the CLO manager market in Europe and US and identify managers with a risk profile that fit SG’s risk appetite, staff movements within CLO managers, traders and structurers, and early signs of stress, credit and liquidity issues for a particular CLO manager.
· Help the Primary CLO head maintain a CLO manager database that identifies each target CLO manager pipeline of CLOs (warehouses opened, expected exit dates) constraints on equity (minority vs majority equity to be placed, risk retention vehicles), CLO investor market feedback on previous deals at each tranche level etc.
2. CLO pitching
· Contribute to the pitching exercise targeting clients on the short list.
· Participate to the design of the pitching decks to ensure impacting materials to maximise pitch success.
· Pitching will be carried out with ABP/AIO, the ABP origination team for financial sponsors in Europe, and relevant coverage bankers, structurers, sales and/or traders as appropriate.
3. Secure CLO mandates
· Work closely with the ABP/AIO team in order to maximise the chances of securing mandates. ABP/AIO will leverage on the existing relationship with a particular CLO manager to optimise the hit ratio on mandates.
· Target is to originate 2-3 CLO mandates in 2023 (including reset/refi), 4-5 mandates in 2024 and a minimum of 5 primary CLO mandates a year from 2025 onwards.
4. CLO warehouse
· Contribute to the definition the CLO warehouse terms.
· Actively seek avenues to optimise funding and capital charge of the CLO warehouse (syndication, refinancing etc).
· Actively participate in the execution of the CLO warehouse (in particular credit approvals and legal documentation negotiation).
· Ensure optimal CLO take out timing to minimise capital and funding charge
5. Execute CLO take-out
· Actively participate to the execution of the CLO capital markets take out and ensure optimal execution with all relevant external stakeholders (lawyers, rating agencies etc.)
· During the execution process ensure close coordination with all relevant internal stakeholders: trading, syndicate, sales, legal and management.
6. CLO distribution
· Contribute to the CLO distribution at each tranche level to management.
· Constantly seek to identify new CLO investors in particular on AAA and Equity and monitor existing CLO investors available limits for CLO investments.
· Help the Head of Primary CLO maintain a CLO investor database that would be updated to take into account recent transactions.
· CLO distribution will be carried out in close coordination with SG syndicate. Capitalize on the US and Asian platforms to achieve an efficient syndication strategy.
7. Cross selling:
· Following CLO execution, contribute to identifying and promoting cross-selling opportunities within ABP and more broadly Global Banking & Finance Division (“GLBA”) with CLO managers such as Capital Calls financing, MML and more generally ABS opportunities.
· Communicate with other platforms (Asia and Amer) on the deals executed and ensure value is extracted from the CLO transaction.
8. CLO desk operational procedures
· Contribute to CLO desk procedures identifying participants, roles and responsibilities with the objective of ensuring a highly industrialised execution process.
· Best practices and procedures will be coordinated and shared with the other ABP region
9. European MML CLO and GLBA balance sheet CLO
· The new joiner is expected to contribute to the wider CLO initiatives within ABP, such as the development of the European MML CLO market and the balance sheet CLO initiatives
· This will be done in close coordination with the teams responsible of these projects
II. Private Equity opportunities
Once the European CLO business has been set-up, the new joiner will, in a second stage of its role, expand and broaden its responsibilities. In addition to the CLO role, the new joiner will enhance products and service offerings of ABP Europe in connection with the Private Equity clients of the bank. This will be done in close coordination with AIO and FFS and could cover areas such as collateralised fund obligations, NAV financing and secondaries funds financing.
The scope and extent of these additional responsibilities will be defined together with FFS and ABP management once the European Primary CLO business is up and running.
At all times, the new joiner is expected to coordinate within ABP in particular on detailed proposals (RfP answers/TS) sent to clients. Pipelines and RWA and liquidity usage will be discussed regularly to ensure scare resources are appropriately budgeted. The new opportunities will be presented to ABP management with a narrative for approval by management ahead of posting to the Risk Division including your Q&A with the team.