Adams Street Closes $350M Debut Middle-Market CLO

Adams Street Partners, LLC has closed its inaugural middle market collateralized loan obligation, ASP Private Investment Fund CLO I, LLC, a $350 million transaction that marks a key step in the expansion of the firm’s private credit platform. Since its launch in 2016, Adams Street’s private credit business has grown to $13.5 billion in assets under management, with the new CLO adding a scalable, capital-markets-based financing channel to support further growth. 

“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.” 

The deal saw strong demand across the capital structure. “The AAA tranche priced at SOFR + 148, an exceptionally competitive pricing level for an inaugural issuance,” noted Tom Vuu, principal on Adams Street’s private credit team and lead for the group’s financing activity. On a blended basis, the firm’s weighted average cost of financing for the CLO is SOFR + 159, providing attractive term funding for its middle market lending strategy. 

Roughly 98% of the loans in the vehicle have already been identified, consisting of direct lending investments originated by Adams Street, which helps align the CLO with the firm’s existing underwriting and portfolio construction approach. The transaction features a four-year reinvestment period, allowing the manager to rotate collateral as new opportunities emerge. Goldman Sachs & Co. LLC served as sole bookrunner on the deal, and Fitch Ratings acted as the rating agency.