Deerpath Capital Management closed Deerpath CLO 2021-1, a $360 million collateralized loan obligation. This CLO represents the third CLO issued by Deerpath since 2018 and brings the firm’s total CLO assets under management to approximately $805 million. Deerpath CLO 2021-1 is secured by a portfolio of primarily directly originated, senior secured loans to middle market private equity-backed companies.
Deerpath sold securities rated from AAA through BBB- to third-party investors, including insurance companies, pension funds, banks and asset managers. Deerpath managed funds purchased 100% of the subordinated notes issued by the CLO. The fund has a three-year reinvestment period. GreensLedge Capital Markets served as lead placement agent, structuring agent and bookrunner. Raymond James served as co-placement agent.
“Our third middle market CLO allows us to continue to shift loan assets into more sturdy financing while enhancing our levered returns for investors without creating undue risk,” Derek Dubois, managing director and treasurer of Deerpath Capital Management, said. “Deerpath’s conservative credit culture, consistent performance, track record through COVID and excellent history of avoiding credit losses resonated very strongly with investors, attracting both re-ups and new investor capital. We were pleased by the continued excellence in service and execution provided by the Greensledge Capital Markets and Raymond James teams.”