NEW YORK, April 21, 2025 -- Deerpath Capital Management, LP ("Deerpath"), one of the largest lower-middle market private credit managers in the U.S., recently announced a reset of Deerpath CLO 2023-1, a $503.5 million collateralized loan obligation (CLO).
This marks the first reset of the 2023-1 CLO since it was originally launched in February 2023. The reset achieved a AAA spread of SOFR+148 bps—down from the original S+280 bps. This marks a significant reduction in the cost of capital for our levered fund investors. With this transaction, Deerpath has now issued fourteen CLOs since 2018, bringing its total CLO assets managed to approximately $5.9 billion.
The updated structure attracted strong interest from a broad base of global institutional investors, including insurance companies, pension funds, and asset managers. Deerpath's managed funds purchased 100 percent of the subordinated notes issued by the CLO. The transaction closed on April 10, 2025 and the reinvestment period ends in 2029.
"Despite ongoing market volatility, we were able to secure significantly improved pricing terms, highlighting Deerpath's consistent strategy and strong track record, and excellent execution from our banking partners at Greensledge Capital Markets LLC and NatWest Markets Securities," said Derek Dubois, Managing Director and Treasurer. "The firm's ability to tighten materially across the stack is a clear testament to the resilience, scalability, and efficiency of our CLO platform—and to the conservatively structured underlying portfolio."
Lead placement agent GreensLedge Capital Markets LLC and co-placement agent NatWest Markets Securities priced this upsized reset.
About Deerpath Capital Management, LP
Founded in 2007, Deerpath Capital Management, LP is one of the largest providers of customized, cash-flow based senior debt financing to lower-middle market companies across diverse industries. The firm currently manages over $8 billion of assets under management. For more information, please visit www.deerpathcapital.com.
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