#United States #New York #private credit #Deerpath Capital #CLO

Deerpath Capital's Strategic Restructuring of 2024 CLO

On June 3, 2026, Deerpath Capital Management, LP, recognized as one of the largest private credit managers targeting the lower-middle market in the U.S., announced a pivotal reset of its 2024-1 Collateralized Loan Obligation (CLO), valued at approximately $452.61 million. This reset is particularly noteworthy as it marks the very first adjustment since the CLO's inception in April 2024, signifying Deerpath's resilient strategies even in a turbulent market environment.

Context and Achievements

This latest transaction also embodies Deerpath's initial undertaking for 2026 and adds to the firm’s impressive portfolio, which has now reached a total of 18 CLOs executed since 2018, amounting to nearly $7.8 billion in cumulative issuances. The CLO securities, rated from AAA to BBB-, were successfully marketed to an array of institutional investors, including pension funds, insurance companies, banks, and asset management firms. Furthermore, Deerpath's managed funds enhanced their involvement by purchasing 100% of the subordinated notes from the CLO.

The reinvestment period for this CLO has been extended to July 15, 2030, a strategic move aimed at yielding long-term benefits for both the firm and its investors.

Insights from Leadership

Derek Dubois, Managing Director and Treasurer at Deerpath Capital, expressed satisfaction with the execution of this reset, particularly considering the current volatility observed in the market. He indicated that this reset exemplifies the firm’s continued access to CLO markets, even amidst significant global economic disruptions and uncertainties. According to Dubois, the improved terms achieved in this transaction highlight Deerpath’s commitment to securing better outcomes for its existing limited partners while also providing CLO investors with a well-structured, high-quality investment portfolio.

Collaborative Efforts

GreensLedge Capital Markets LLC acted as the placement agent for the CLO reset, facilitating Deerpath's strategic endeavors within this dynamic financial landscape. This collaborative effort underscores the importance of experienced partners in navigating the complexities of the financial markets, especially during periods marked by instability.

About Deerpath Capital Management

Deerpath Capital has established its presence as a distinguished private credit manager, specializing in tailoring senior debt financing solutions to aid sponsor-backed companies within the U.S. lower-middle market. With a dedicated focus on this niche segment for nearly 20 years, Deerpath has deployed over $15 billion across more than 1,200 financial transactions, currently managing upwards of $9 billion in assets under management as of March 31, 2026.

The firm's operations are bolstered by regional origination and underwriting teams spread across the U.S., while backed by a strong global investor base that encompasses major regions including the U.K., Europe, Japan, and the Middle East. Deerpath’s strategic focus, coupled with its in-depth market insights and robust lender relationships, forms the core of what it terms the 'Deerpath Difference,' a commitment to excellence in private credit financing.

For more detailed information about their offerings and strategic pursuits, visit www.deerpathcapital.com.

Conclusion

Deerpath Capital's recent CLO reset serves not only as a testament to its adaptability in challenging markets but also reinforces its ongoing commitment to its investors. The ability to successfully navigate through volatile conditions while securing advantageous terms is emblematic of Deerpath’s effective leadership and strategic foresight. Investors and market participants will be keenly observing how Deerpath continues to evolve and respond to the complexities of the financial landscape in the coming years.