Polen Interval Fund Broadens Strategy to Include CLOs
Global asset manager Polen Capital announced that it has amended the investment strategy of its interval fund, Polen Credit Opportunities Fund, to include investments in collateralized loan obligations, also known as CLOs, and other collateralized obligations risk. The fund expects to primarily invest in the senior and mezzanine tranches of CLOs but may invest occasionally in equity tranches as well.
Launched in August 2023, the Polen Credit Opportunities Fund is structured as a continuously offered interval fund, offering institutional class shares with a $100,000 minimum investment to accredited investors. The fund conducts quarterly repurchase offers of 5% to 25% of its net asset value per share, reduced by any applicable repurchase fee.
The fund’s objective is overall total return consisting of a high level of current income together with long-term capital appreciation. The fund seeks to achieve its objective by investing primarily in high-yield credit instruments that are rated below investment grade, with a focus on “middle market” issuers. The fund may also invest in debt securities of stressed and distressed issuers, along with privately negotiated debt instruments.
Polen Credit Opportunities Fund includes a daily NAV, which, as of June 18, 2025, was $9.34. The fund originally launched with a NAV of $9.98 on Aug. 28, 2023. As of May 31, 2025, the fund had an average yield of 12.8% and a distribution rate of 9.65%. From September 2023 through March 2025, the fund has paid a monthly dividend ranging from $0.07 to $0.10, according to information on the fund’s website.
As of May 31, 2025, the fund was made up of 43.84% term loans, 28.27% senior unsecured notes, 13.5% secured notes, 3.91% equity, 2.31% holdco/subordinated debt, and 8.17% cash and cash equivalents. In regard to credit quality, 56.83% of the portfolio was rated CCC, 28.89% was rated B, and 13.74% was not rated as of the end of May 2025.
The ’40 Act fund is advised by Polen Capital Credit LLC, a wholly owned subsidiary of Polen Capital Management LLC.
Once considered a niche asset class, interval funds have exploded in popularity in recent years. First Eagle launched a new interval fund earlier this month, and Capital Group and KKR recently had two interval funds declared effective by the SEC. Alternative investment platform CAIS also recently expanded its platform’s execution capability to include interval funds.
Established in 1979, Polen Capital is a global asset management firm focused on growth equity and high-yield credit strategies. As of June 30, 2024, the firm had $58.2 billion in assets under management.
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