#United States #New York #private credit #Deerpath Capital #CLO 2023-2

Deerpath Capital's Successful CLO Reset

Deerpath Capital Management, LP, recognized as one of the foremost private credit managers in the U.S. focused on the lower-middle market, has made headlines with its recent announcement regarding the successful reset of its 2023-2 Collateralized Loan Obligation (CLO). This reset signifies a crucial milestone in Deerpath's ongoing efforts to deliver robust investment opportunities while maintaining a strong market presence.

Overview of the CLO Reset

On December 19, 2025, Deerpath executed a noteworthy reset for the Deerpath CLO 2023-2, which has a total value of approximately $353.55 million. This move marks the first reset since the CLO was launched at the end of 2023. Notably, the reset achieved an impressive AAA spread of SOFR+147bps, which is significantly lower than the original SOFR+255. This reduction in spread highlights Deerpath's agility and reliability in navigating the complex credit landscape.

The 2023-2 CLO's redesign attracted substantial interest from a wide range of global institutional investors, including well-respected insurance companies, pension funds, and asset management firms. In a testament to the confidence in Deerpath's capabilities, the firm’s managed funds acquired 100% of the subordinated notes associated with this CLO. This activity is indicative of the strong alignment and trust established between Deerpath and its investors.

Year of Strong Performance

2025 has proven to be an exceptionally productive year for Deerpath. The reset of the CLO 2023-2 marks the fourth CLO transaction that Deerpath has successfully completed in 2025, contributing to an impressive total issuance of around $2 billion for the year. This follow-up to previous transactions, including the earlier refinance of the Deerpath CLO 2020-1 executed in September 2025, underscores the firm's adaptive strategies in the financial market.

Derek Dubois, the Managing Director and Treasurer of Deerpath, expressed satisfaction with the firm's operational performance, stating, "As we approach the end of the year, we are pleased to announce the completion of our fourth transaction of the year. During a very active 2025, we drove accretive results for the platform by consistently accessing the CLO reset and upsize market. Thank you to our investors and team for a strong year – we look forward to carrying this momentum into 2026."

A Deep Dive into Deerpath's Operating Philosophy

Founded in 2007, Deerpath Capital Management has carved its niche in providing tailored, cash-flow-based senior debt financing to sponsor-backed lower middle-market companies across the United States. With nearly two decades of dedicated focus on this market segment, the firm has executed over 1,200 transactions, collectively investing more than $14 billion and currently managing approximately $9 billion in assets under management (AUM).

Deerpath's operational strategy revolves around regionally based U.S. origination and underwriting teams, supplemented by a robust global investor coverage structure. This framework allows Deerpath to leverage a wealth of experience and prioritize building strong relationships with sponsors, crafting an environment that enables consistent returns for both investors and the firm itself.

The successful reset of CLO 2023-2 not only illustrates Deerpath's commitment to innovation and responsiveness in the private credit space but also affirms the company's strategic focus on providing value to its investors and stakeholders. As the financial landscape continues to evolve, Deerpath Capital’s ability to adapt and thrive positions them well for future growth and success.

For further information about Deerpath Capital Management and their offerings, interested parties can visit Deerpath Capital’s official website.