Collateralized fund obligation

Generally, money is allocated into several different tranches by investors based on priority. A tranche is described as a security that can be divided into small portions and then sold in those portions to an investor. From the tranches the funds are then invested into a special purpose vehicle (SPV). SPVs are developed solely for the purpose of a CFO. ==Private equity CFOs==

Since the advent of CFOs (), there have been only a handful of publicly announced private equity securitization transactions. Typically, owners of private equity assets will securitize a portfolio of funds as a way of generating liquidity without an outright secondary sale of the funds. • In 2006 Temasek Holdings completed $810 million securitization of a portfolio of 46 private equity funds. • SVG Capital has executed three CFO securitizations as part of its "Diamond" program, SVG Diamond (2004), SVG Diamond II (2006) and SVG Diamond III (2007). • Alongside its CLO program, Mizuho IM has launched its first CFO called Vintage I in 2007, a EUR 500 million fund investing in global buyout funds. The investment has proved extremely successful so far. Now under the ownership of 3i Group, the Vintage team closed a second US$400 million Vintage II. • Tenzing (2004) — Securitization of private equity fund assets by Invesco • Pine Street (2003) — Securitization of private equity fund assets by AIG • Silver Leaf (2003) — Securitization of private equity fund assets by Deutsche Bank ==See also==