Adams Street Partners has raised $350 million for its first publicly issued collateralized loan obligation, marking a new funding channel for the firm’s private credit platform.
The middle market CLO, ASP PIF CLO I, LLC, closed at $350 million and is backed primarily by Adams Street-originated direct lending investments. The firm said roughly 98% of the loans in the portfolio have already been identified, and the vehicle will include a four-year reinvestment period.
Adams Street positioned the deal as a milestone for its private credit business, which has grown to $13.5 billion in assets under management since launching in 2016. The firm said the CLO expands its ability to finance portfolios using third-party capital and reflects investor demand for its strategy.
In the capital structure, the AAA tranche priced at SOFR plus 148 basis points, which the firm described as highly competitive for a debut issuance. Across the structure, Adams Street reported a weighted average cost of financing of SOFR plus 159 basis points.
Support: Goldman Sachs & Co. LLC served as sole bookrunner, and Fitch Ratings provided ratings.
KEY QUOTES:
“This debut CLO represents another important advancement for Adams Street’s private credit platform and reflects strong investor demand for our strategy. Public CLOs are likely to represent an important financing avenue as we continue to expand our private credit business.”
Bill Sacher, Partner and Head of Private Credit, Adams Street Partners
“The AAA tranche priced at SOFR + 148, an exceptionally competitive pricing level for an inaugural issuance.”
Tom Vuu, Principal, Adams Street Private Credit Team
