Deerpath Capital Management Upsizes Its 2021 CLO to $479 Million

Deerpath Capital Management Increases 2021 CLO

Deerpath Capital Management, LP, a prominent player in the U.S. lower-middle market private credit sector, has announced a significant development regarding its collateralized loan obligation (CLO) strategy. On August 20, 2025, the firm successfully reset and increased its 2021 CLO, dubbed Deerpath CLO 2021-2, from its earlier size of $429.5 million to a remarkable $479 million. This represents an upsize of $50 million, underscoring Deerpath's continued resilience and growth in a competitive market landscape.

Originally issued in December 2021, Deerpath CLO 2021-2 is now recognized as the fifteenth CLO that Deerpath has launched since 2018. Cumulatively, this brings the firm's total CLO issuance to an impressive $6.3 billion. This accomplishment not only signifies robust demand from institutional investors but also reflects the firm's strategic management and understanding of market dynamics.

According to Derek Dubois, Managing Director and Treasurer at Deerpath, this achievement highlights the firm's ongoing ability to tap into the CLO market, especially in 2025. The reset and upsize of Deerpath CLO 2021-2, alongside the earlier reset of Deerpath CLO 2023-1, demonstrates a successful approach to securing more favorable financial conditions for their investors. The deal was well-received, drawing significant interest from global institutional investors, such as pension funds, insurance firms, and asset managers, eager to engage with the updated structure of the CLO.

One of the notable aspects of this transaction is that Deerpath's managed funds acquired 100% of the subordinated notes issued by the upscaled CLO. This strategic move not only strengthens Deerpath's portfolio but also constitutes an important vote of confidence in the firm's financial management.

The reinvestment period for Deerpath CLO 2021-2 has been extended to October 15, 2029. This extension provides considerable flexibility and opportunity for the firm to optimize its investment strategy moving forward. The lead placement agent for this transaction, GreensLedge Capital Markets LLC, along with co-placement agent NatWest Markets Securities, facilitated the pricing of the upsized CLO, ensuring neat execution and alignment with market expectations.

Deerpath Capital Management has established itself as one of the preeminent providers of customized, cash-flow based senior debt financing, serving a variety of lower-middle market companies across diverse industries. The firm has been managing over $8 billion in assets and continues to innovate and adapt in the evolving landscape of private credit. With its commitment to providing tailored financial solutions, Deerpath is well-positioned for continued growth and success.

As Deerpath moves into a new era of financial opportunities, the recent reset and upsize of its CLO is a clear indication of the firm’s robust positioning in the credit market. Investors can expect continued initiatives from Deerpath as they leverage their substantial market presence to deliver value.

For further details, visit Deerpath Capital’s website.