Deerpath Capital Management has announced the closing of Deerpath CLO 2024-1, a $452.61 million collateralized loan obligation (CLO). This marks Deerpath’s first new issuance CLO this year. Including a CLO reset and upsize in July 2023 and CLO 2023-2, this deal represents the firm’s tenth CLO over the past six years. Deerpath Capital is one of the largest customized, cash-flow-based senior debt financing providers to lower-middle market companies across North America.
Deerpath CLO 2024-1 brings the firm’s total CLO assets under management to about $3.2 billion. And Deerpath CLO 2024-1 is secured by a large and diversified portfolio of senior secured loans to middle-market, private equity-backed companies. The loans in the portfolio primarily originated from the firm.
Deerpath had sold securities rated from AAA through BBB- to third-party institutional investors, including insurance companies, pension funds, banks, and asset managers. Like its other CLOs, Deerpath’s managed funds purchased 100 percent of the subordinated notes issued by the CLO. Deerpath CLO 2024-1 has a four-year reinvestment period.
Along with KeyBanc Capital Markets, GreensLedge Capital Markets was the lead placement and co-structuring agent.
KEY QUOTE:
“Deerpath was able to continue to expand our investor base across the capital stack and work with a diverse group of new and existing investors. Our CLO platform continues to allow our investors access to a differentiated investment strategy in the lower-middle market while enhancing our fund investor returns.”
– Derek Dubois, Managing Director and Treasurer
