Deerpath Capital Achieves Successful Reset of 2023 CLO, Enhancing Investor Value
On April 21, 2025, Deerpath Capital Management, LP, recognized as a major player in the U.S. lower-middle market private credit space, declared a successful reset of its 2023 collateralized loan obligation (CLO), specifically the Deerpath CLO 2023-1 valued at approximately $503.5 million. This pivotal event serves as the inaugural reset for this CLO since its launch in February 2023. The revised structure boasts a notable AAA spread of SOFR+148 basis points, a substantial decrease from the original spread of SOFR+280 basis points. This strategic adjustment significantly reduces the capital costs for their levered fund investors, showcasing Deerpath’s commitment to maintaining competitive financial solutions within a fluctuating market.
Since its establishment in 2007, Deerpath Capital has issued a total of fourteen CLOs, thereby managing total assets of around $5.9 billion. The recent CLO reset attracted a diverse range of global institutional investors, including pension funds, asset managers, and insurance companies, reinforcing the firm's robust market presence. Notably, Deerpath's managed funds were responsible for acquiring 100% of the subordinated notes issued within this CLO. This transaction was finalized on April 10, 2025, with the reinvestment period slated to conclude in 2029.
Derek Dubois, the Managing Director and Treasurer of Deerpath, expressed satisfaction with the transaction outcomes despite the prevailing volatility in the market. 'The ability to secure improved pricing terms reaffirms our consistent strategy and strong track record,' he said, attributing the favorable outcome to the excellent execution by their banking partners at GreensLedge Capital Markets LLC and NatWest Markets Securities. The transaction also exemplifies the resilience, scalability, and efficiency of their CLO platform, alongside the conservatively structured underlying portfolio that supports these investments.
In the backdrop of an ever-evolving financial landscape, Deerpath Capital Management continues to prioritize strategic moves that benefit their investors and reinforce their standing in the private credit domain. The firm is recognized as one of the largest providers of tailored, cash-flow based senior debt financing, specifically catering to lower-middle market companies across a wide spectrum of industries. Currently, Deerpath manages over $8 billion in assets, establishing itself as a trusted partner for businesses seeking financial resources tailored to their growth objectives. For more information about Deerpath Capital Management, their services, and other offerings, prospective clients and investors can explore www.deerpathcapital.com.
Overall, the recent reset of the Deerpath CLO 2023-1 not only strengthens Deerpath's financial framework but also enhances the investment outlook for all stakeholders involved, reinforcing confidence in the firm’s strategies amidst market uncertainties.
Since its establishment in 2007, Deerpath Capital has issued a total of fourteen CLOs, thereby managing total assets of around $5.9 billion. The recent CLO reset attracted a diverse range of global institutional investors, including pension funds, asset managers, and insurance companies, reinforcing the firm's robust market presence. Notably, Deerpath's managed funds were responsible for acquiring 100% of the subordinated notes issued within this CLO. This transaction was finalized on April 10, 2025, with the reinvestment period slated to conclude in 2029.
Derek Dubois, the Managing Director and Treasurer of Deerpath, expressed satisfaction with the transaction outcomes despite the prevailing volatility in the market. 'The ability to secure improved pricing terms reaffirms our consistent strategy and strong track record,' he said, attributing the favorable outcome to the excellent execution by their banking partners at GreensLedge Capital Markets LLC and NatWest Markets Securities. The transaction also exemplifies the resilience, scalability, and efficiency of their CLO platform, alongside the conservatively structured underlying portfolio that supports these investments.
In the backdrop of an ever-evolving financial landscape, Deerpath Capital Management continues to prioritize strategic moves that benefit their investors and reinforce their standing in the private credit domain. The firm is recognized as one of the largest providers of tailored, cash-flow based senior debt financing, specifically catering to lower-middle market companies across a wide spectrum of industries. Currently, Deerpath manages over $8 billion in assets, establishing itself as a trusted partner for businesses seeking financial resources tailored to their growth objectives. For more information about Deerpath Capital Management, their services, and other offerings, prospective clients and investors can explore www.deerpathcapital.com.
Overall, the recent reset of the Deerpath CLO 2023-1 not only strengthens Deerpath's financial framework but also enhances the investment outlook for all stakeholders involved, reinforcing confidence in the firm’s strategies amidst market uncertainties.
Topics Financial Services & Investing）
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