The private credit team of Adams Street Partners, a private markets investment firm with more than $65 billion in assets under management, closed a $350 million middle market collateralized loan obligation (CLO), ASP PIF CLO I.
The transaction marks a significant milestone in the continued expansion of Adams Street’s private credit platform, which has grown to $13.5 billion under management since its launch in 2016.
“This debut CLO represents another important advancement for Adams Street’s private credit platform and reflects strong investor demand for our strategy,” Bill Sacher, partner and head of private credit at Adams Street, said. “Public CLOs are likely to represent an important financing avenue as we continue to expand our private credit business.”
The transaction achieved strong execution and robust investor participation, underscoring confidence in Adams Street’s credit platform.
“The AAA tranche priced at SOFR + 148, an exceptionally competitive pricing level for an inaugural issuance,” Tom Vuu, principal on Adams Street’s private credit team and lead for the group’s financing activity, said. Across the structure, the firm’s weighted average cost of financing will be SOFR + 159.
Approximately 98% of the loans included in the CLO have been identified, each representing direct lending investments originated by Adams Street. The CLO will have a four-year reinvestment period. Goldman Sachs served as sole bookrunner, and Fitch Ratings acted as the ratings agency.
