Deerpath Capital Management closed Deerpath CLO 2024-1, a $452.6 million collateralized loan obligation (CLO). This marks Deerpath’s first new issuance CLO in 2024. Including a CLO reset and upsize in July 2023 and CLO 2023-2, this transaction represents the firm’s 10th CLO over the past six years.
Deerpath CLO 2024-1 brings the firm’s total CLO assets under management to approximately $3.2 billion. Deerpath CLO 2024-1 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 the firm.
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 2024-1 has a four-year reinvestment period.
“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,” Derek Dubois, managing director and treasurer of Deerpath, said. “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.”
GreensLedge Capital Markets served as lead placement agent and co-structuring agent along with KeyBanc Capital Markets for the CLO.
