Deerpath Capital Management, a provider of cash flow-based senior debt financing to lower middle-market companies in North America, closed Deerpath CLO 2021-2, a $425 million collateralized loan obligation.

This CLO represents the fourth CLO issued by Deerpath Capital Management since 2018 and brings the firm’s total CLO assets under management to approximately $1.4 billion. Similar to the firm’s existing CLOs, Deerpath CLO 2021-2 is secured by a portfolio of primarily directly originated, senior secured loans to middle-market, private equity-backed companies.

Deerpath Capital Management sold securities rated from AAA through BBB- to third-party institutional investors, including insurance companies, pension funds, banks and asset managers. Deerpath Capital Management’s managed funds purchased 100% of the subordinated notes issued by the CLO. The fund has a four-year reinvestment period.

GreensLedge Capital Markets served as lead placement agent, structuring agent and bookrunner for the CLO, while Raymond James served as co-placement agent.

“As a result of strong originations throughout 2021, we were able to issue our fourth middle-market CLO overall and second of 2021,” Derek Dubois, managing director and treasurer at Deerpath Capital Management, said. “Through our programmatic CLO issuance, we continued to shift loan assets into sturdier and cheaper financing. This enhances our levered returns for our equity investors without creating undue risk. We were pleased by the excellence in service and execution provided by Greensledge Capital Markets and Raymond James.”