Adams Street Partners’ private credit team has held the final close of a $350 million middle-market collateralized loan obligation, ASP PIF CLO I, LLC, marking the firm’s inaugural public CLO issuance. The firm said the deal expands its private credit financing toolkit and brings in third-party capital to support the continued growth of its direct lending platform.
Adams Street said its private credit business has grown to $13.5 billion under management since launching in 2016, within a broader firm managing more than $65 billion in assets. The CLO is largely composed of Adams Street-originated loans, with the firm saying about 98% of the loans in the portfolio have already been identified and are direct lending investments it originated. The vehicle includes a four-year reinvestment period.
On pricing, Adams Street said the AAA tranche priced at SOFR + 148, and the structure’s weighted average cost of financing is expected to be SOFR + 159.
Support: Goldman Sachs served as sole bookrunner and Fitch Ratingsacted as the ratings agency.
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; Financing Lead
