Deerpath Capital Management Closes Its Sixteenth CLO, Boosting Global Investor Confidence
On September 30, 2025, Deerpath Capital Management, LP, a prominent player in the U.S. private credit market targeting lower-middle markets, announced the closure of its latest collateralized loan obligation (CLO), named Deerpath CLO 2025-1. This transaction amounts to an impressive $653.50 million and signifies Deerpath's sixteenth CLO to date, underscoring its significant presence in the sector. With this latest addition, Deerpath effectively raises its total CLO assets under management to approximately $3.9 billion.
The initiation of Deerpath CLO 2025-1 marks the third CLO transaction from the firm in the year 2025, following the successful resets of Deerpath CLO 2023-1 and an upsizing of Deerpath CLO 2021-2 earlier in the year. Collectively, these CLO issuances exceed $1.6 billion this year alone, reflecting a robust pipeline that can adapt to market dynamics.
What sets this particular CLO apart is its strong backing by a diversified portfolio consisting of senior secured loans, primarily allocated to middle-market, private equity-backed enterprises. In a strategic move, Deerpath opted to redeem its previous 2020-1 transaction, a $403 million issuance that had been reset earlier in 2023. The latest transaction not only bolsters the firm's asset structure but also is anticipated to reflect a significant improvement in interest expenses for its investors.
Deerpath's appetite for this CLO was met with enthusiastic engagement from various institutional clients, including pension funds, banks, and asset managers. A notable point of interest was the substantial traction gained in the Asia-Pacific region, indicative of Deerpath's expanding global footprint and appeal. With the closure finalized on September 30, 2025, the reinvestment period for this transaction is set to extend until October 15, 2029, providing ample time for further optimizations and strategic financial maneuvers.
Derek Dubois, Managing Director and Treasurer at Deerpath, stated that the firm's proactive engagement with the CLO market in 2025 has facilitated a consistent flow of transactions while expanding its international investor base and refinancing higher-cost liabilities. He emphasized the strong demand as a testament to the firm's platform viability and the trust that global investors place in Deerpath's operational strategy.
GreensLedge Capital Markets LLC acted as the Lead Placement Agent during this significant transaction. Founded in 2007, Deerpath Capital Management has established itself as one of the leading entities providing tailored, cash-flow-based senior debt financing specifically aimed at lower-middle market companies across various industries. Currently, the firm maintains an impressive portfolio of roughly $9 billion in assets under management. For more information about their offerings, visit Deerpath Capital's official website.
In conclusion, Deerpath's successful closure of its sixteenth CLO reflects both its financial acumen and adaptability in the ever-evolving private credit landscape. As the firm continues to navigate complex market conditions, its strategic transactions and investor relations will undoubtedly play a pivotal role in its ongoing growth and success.
The initiation of Deerpath CLO 2025-1 marks the third CLO transaction from the firm in the year 2025, following the successful resets of Deerpath CLO 2023-1 and an upsizing of Deerpath CLO 2021-2 earlier in the year. Collectively, these CLO issuances exceed $1.6 billion this year alone, reflecting a robust pipeline that can adapt to market dynamics.
What sets this particular CLO apart is its strong backing by a diversified portfolio consisting of senior secured loans, primarily allocated to middle-market, private equity-backed enterprises. In a strategic move, Deerpath opted to redeem its previous 2020-1 transaction, a $403 million issuance that had been reset earlier in 2023. The latest transaction not only bolsters the firm's asset structure but also is anticipated to reflect a significant improvement in interest expenses for its investors.
Deerpath's appetite for this CLO was met with enthusiastic engagement from various institutional clients, including pension funds, banks, and asset managers. A notable point of interest was the substantial traction gained in the Asia-Pacific region, indicative of Deerpath's expanding global footprint and appeal. With the closure finalized on September 30, 2025, the reinvestment period for this transaction is set to extend until October 15, 2029, providing ample time for further optimizations and strategic financial maneuvers.
Derek Dubois, Managing Director and Treasurer at Deerpath, stated that the firm's proactive engagement with the CLO market in 2025 has facilitated a consistent flow of transactions while expanding its international investor base and refinancing higher-cost liabilities. He emphasized the strong demand as a testament to the firm's platform viability and the trust that global investors place in Deerpath's operational strategy.
GreensLedge Capital Markets LLC acted as the Lead Placement Agent during this significant transaction. Founded in 2007, Deerpath Capital Management has established itself as one of the leading entities providing tailored, cash-flow-based senior debt financing specifically aimed at lower-middle market companies across various industries. Currently, the firm maintains an impressive portfolio of roughly $9 billion in assets under management. For more information about their offerings, visit Deerpath Capital's official website.
In conclusion, Deerpath's successful closure of its sixteenth CLO reflects both its financial acumen and adaptability in the ever-evolving private credit landscape. As the firm continues to navigate complex market conditions, its strategic transactions and investor relations will undoubtedly play a pivotal role in its ongoing growth and success.
Topics Financial Services & Investing）
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