Since the release of the final U.S. risk retention rule (the “Final Rule”) in October 2014, CLO market participants have been grappling with its ramifications and working to devise solutions that permit collateral managers to raise the capital necessary to support the investments mandated by the Final Rule. In a Dechert OnPoint published shortly after the Final Rule was released, we proposed a number of potential solutions for CLO market participants. In January, we discussed the capitalized manager vehicle option (“CMV”) and answered many other frequently asked questions, including queries surrounding the permissibility of the majority-owned affiliate (“MOA”) option. More recently, we have seen increased interest in the use of a hybrid structure that participants are referring to as the capitalized majority-owned affiliate (“C-MOA”). In this OnPoint, we describe both the structure of a prototypical CMOA and how a C-MOA may be structured to satisfy both EU and US risk retention requirements.