Deerpath Capital Management, LP announced the closing of Deerpath CLO 2024-1, a $452.61 million collateralized loan obligation (CLO). This is Deerpath’s first new issuance CLO this year.
This deal, including a CLO reset and upsize in July 2023 and CLO 2023-2, represents the firm’s tenth CLO over the past six years. Deerpath Capital is one of the largest providers of customized, cash-flow-based senior debt financing 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 this portfolio have primarily originated directly from the firm.
Deerpath sold securities rated from AAA through BBB- to third-party institutional investors, including insurance companies, pension funds, banks, and asset managers. And as with its other CLOs, Deerpath’s managed funds bought 100% of the subordinated notes issued by the CLO. Deerpath CLO 2024-1 has a four-year reinvestment period.
Launched in 2007, Deerpath Capital Management, LP is one of the largest providers of customized, cash-flow based senior debt financing to lower-middle market companies across diverse industries. And the firm currently manages approximately $7.2 billion of assets under management.
GreensLedge Capital Markets served as Lead Placement Agent and Co-Structuring Agent along with KeyBanc Capital Markets.
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
