Adams Street Partners has announced the final closing of a $1bn (£789,000) middle market collateralised loan obligation (CLO).
It is the first CLO for the asset manager and was structured in partnership with American Equity Investment Life Insurance Company (AEL).
Adams Street and AEL entered into a $2bn partnership in 2021 to co-develop insurer capital-efficient products in middle market credit.
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The CLO – dubbed ASP Summa – is comprised of senior loans issued by private equity backed mid-market companies and was originated through Adams Street’s private credit team.
“Adams Street’s first CLO represents a significant milestone for our private credit business,” said Bill Sacher, partner and head of private credit at Adams Street. “This is expected to be a capital efficient solution that will demonstrate the power of our investment platform and ability to deliver attractive solutions to AEL and insurance companies globally.”
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Anant Bhalla, chief executive of AEL, said: “We are proud to partner with Adams Street on the creation of our inaugural middle market credit CLO. By combining our knowledge and expertise in insurance investment structuring with Adams Street’s lending platform which is among the best in class in the middle market, we believe we have created a superior capital solution that can deliver on key objectives outlined in AEL 2.0 and create significant value for both our policyholders and shareholders.”
Adams Street is a global private markets investment manager with $58bn under management. Its private credit team manages $9.7bn of assets.
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