Deerpath Capital Management, one of the largest lower-middle market private credit managers in the U.S., recently announced a reset of Deerpath CLO 2023-1, a $503.5 million collateralized loan obligation (CLO).
This is the first reset of the 2023-1 CLO since it was originally launched in February 2023. And the reset achieved a AAA spread of SOFR+148 bps, which is down from the original S+280 bps. And this marks a significant reduction in the cost of capital for our levered fund investors.
With this deal, Deerpath has now issued fourteen CLOs since 2018, bringing its total CLO assets managed to approximately $5.9 billion.
The updated structure featured strong interest from a broad base of global institutional investors, such as insurance companies, pension funds, and asset managers. And Deerpath’s managed funds purchased 100 percent of the subordinated notes issued by the CLO. The transaction closed on April 10, 2025 and the reinvestment period ends in 2029.
Placement agents: Lead placement agent GreensLedge Capital Markets and co-placement agent NatWest Markets Securities priced this upsized reset.
KEY QUOTE:
“Despite ongoing market volatility, we were able to secure significantly improved pricing terms, highlighting Deerpath’s consistent strategy and strong track record, and excellent execution from our banking partners at Greensledge Capital Markets LLC and NatWest Markets Securities. The firm’s ability to tighten materially across the stack is a clear testament to the resilience, scalability, and efficiency of our CLO platform—and to the conservatively structured underlying portfolio.”
Derek Dubois, Managing Director and Treasurer
