Deerpath Capital Management closed Deerpath CLO 2023-2, a $353.65 million collateralized loan obligation, marking Deerpath’s second new issuance CLO in 2023 and, including a CLO reset and upsize in July, the firm’s ninth CLO over the past six years.
Deerpath CLO 2023-2 brings the firm’s total CLO assets under management to approximately $2.8 billion. Deerpath CLO 2023-2 is secured by a portfolio of senior secured loans to middle-market, private equity-backed companies. The loans in the portfolio have been primarily directly originated by Deerpath.
Deerpath sold securities rated from AAA through BBB- to third-party institutional investors, including insurance companies, pension funds, banks and asset managers. As with its other CLOs, Deerpath’s managed funds purchased 100% of the subordinated notes issued by the CLO. Deerpath CLO 2023-2 has a four-year reinvestment period.
“Deerpath has continued to programmatically access the debt capital markets at attractive terms for our investors,” Derek Dubois, managing director and treasurer for Deerpath Capital Management, said. “This is a testament to the strength of our platform as the leading direct lender focused on the lower middle market.”
GreensLedge Capital Markets served as lead placement agent and structuring agent on this transaction, while NatWest Markets served as co-placement agent.