New York-based firms Marathon Asset Management and Deerpath Capital Management have closed on over $900 million in new collateralized loan obligation offerings in recent weeks as demand for collateralized products picks up alongside interest rates moves.
Earlier this month, Marathon Asset Management LP closed its first new CLO of the year with $400 million. The Bryant Park Funding 2023-19 Ltd. offering is under the $20 billion-plus investment firm’s Bryant Park Funding shelf, which focuses on high-quality, liquid, broadly syndicated senior secured loans with an emphasis on capital preservation, lower volatility and structural durability.
Deerpath Capital Management closed on it seventh CLO since 2018. The $504 million issue, Deerpath CLO 2023-1, brings the firm’s CLO assets under management to $2.3 billion.
“Deerpath continues to demonstrate its ability to access the debt capital markets at attractive terms for our investors,” said Derek Dubois, managing director and treasurer. “This is a testament to the strength of our platform as the leading direct lender focused on the lower middle market.”
The underlying loans in the portfolio are many and diverse with a focus on senior secured loans to middle market companies backed by private equity sponsors. The CLO has a four-year reinvestment period, and the majority of the loans were directly originated by Deerpath’s team.
The $6 billion firm has sold securities rated from AAA through BBB- to third-party institutional investors, including insurance companies, pension funds, banks and asset managers. Notably, Deerpath’s managed funds have purchased all of the subordinated notes issued by the CLO.