Deerpath Capital Sets Record with $724.7 Million CLO Upsize
Deal News | Dec 12, 2024 | Deerpath Capital Management LP
Deerpath Capital Management LP has announced the successful reset and upsize of its Deerpath CLO 2022-1, increasing the collateralized loan obligation to $724.7 million, marking the largest CLO in the firm's history. Originally sized at $373 million, the CLO was priced in May 2022. This transaction is part of Deerpath's continued expansion in the CLO market during 2024, bringing the firm's total CLO assets under management to approximately $3.7 billion. Deerpath's fourth CLO issuance this year also contributes to a total of $2 billion CLO issuance for 2024. All existing CLOs, including Deerpath CLO 2022-1, are backed by portfolios of senior secured loans to middle market, private equity-backed companies, many of which are directly originated by Deerpath. Securities rated from AAA to BBB- were sold to third-party institutional investors worldwide, while Deerpath’s managed funds bought all subordinated notes. Financial services firms GreensLedge Capital Markets LLC and NatWest Markets Securities acted as the lead and co-placement agents. The transaction was finalized on December 10, 2024, with the reinvestment period extending to 2029.
Sectors
- Private Credit
- Collateralized Loan Obligations
- Financial Services
Geography
- United States – Deerpath Capital, based in the U.S., is a major private credit manager and the article revolves around its U.S. operations in CLO markets.
- Global – The distribution of CLO securities to institutional investors worldwide highlights a global operational scope.
Industry
- Private Credit – The article discusses Deerpath Capital's issuance of a collateralized loan obligation, indicating its operations in private credit markets.
- Collateralized Loan Obligations – The core of the article revolves around Deerpath Capital's CLO activities, making this industry relevant.
- Financial Services – The financial services sector is relevant as the article involves financial transactions, placement agents, and institutional investors.
Financials
- $724.7 million – The upsized amount of the Deerpath CLO 2022-1, marking the largest CLO in Deerpath's history.
- $373 million – The original size of the Deerpath CLO 2022-1 priced in May 2022.
- $3.7 billion – Total CLO assets under management by Deerpath Capital following the upsizing.
- $2 billion – Total CLO issuance by Deerpath Capital in 2024.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Deerpath Capital Management LP | Issuer | Company | A large U.S. private credit manager specializing in middle market transactions. |
| GreensLedge Capital Markets LLC | Lead Placement Agent | Company | A firm that acted as the lead placement agent for the CLO transaction. |
| NatWest Markets Securities | Co-Placement Agent | Company | A firm that acted as co-placement agent in the CLO upsizing transaction. |
| Derek Dubois | Managing Director and Treasurer | Person | An executive at Deerpath Capital commenting on the transaction. |
| Institutional Investors | Investors | People | Various third-party institutional investors, including insurance companies, pension funds, banks, and asset managers globally. |