Adams Street closes $350m private credit CLO
Adams Street has closed its first public collateralised loan obligation (CLO) vehicle, raising $350m (£259.8bn), as it expands its private credit platform.
ASP PIF CLO I, LLC has a portfolio of middle-market loans, with 98 per cent of the assets representing direct lending investments originated by the $65bn alternatives firm.
The move comes as the Adams Street’s private credit business has grown to $13.5bn of assets under management.
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“This debut CLO represents another important advancement for Adams Street’s private credit platform and reflects strong investor demand for our strategy,” said Bill Sacher, partner and head of private credit at Adams Street. “Public CLOs are likely to represent an important financing avenue as we continue to expand our private credit business.”
Across the structure, the firm’s weighted average cost of financing is around SOFR plus 159bp, Adams Street said. The CLO will have a four-year reinvestment period.
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“The AAA tranche priced at SOFR + 148, an exceptionally competitive pricing level for an inaugural issuance,” said Tom Vuu, principal on Adams Street’s private credit team and lead for the group’s financing activity.
