Milbank LLP structured credit partner Sean M. Solis commented on the growth of private credit collateralized loan obligations (CLOs) in a Termgrid article titled “The Rise of Private Credit CLOs.”
The article discusses a shift in the market, which has seen a rebrand from middle market to private credit CLOs – a bespoke asset class designed to reach a different type of investor. Mr. Solis, who leads Milbank’s global Structured Credit practice, said, “As private credit grows with more fund managers getting into private credit and existing fund managers raising more funds, there is likely to be a proliferation of private credit CLOs.”
While CLOs are typically comprised of a portfolio of leveraged loans securitized and managed as a fund, private credit seems to be taking the spotlight as the underlying asset. Mr. Solis noted, “The rated structure meets the needs of an important investor base and structures can be tailored to meet individual investor needs. For private credit funds, this offers a way to diversify funding and write more checks.”
Milbank’s structured credit team, named “Structured Finance Practice of the Year” (Law360) and “Structured Finance and Securitization Team of the Year” (IFLR Americas Awards) advises clients on groundbreaking financings, including the creation of two innovative new CLO types in 2023, and closed more CLO deals globally in 2023, by both deal count and volume, than any other law firm in the market, according to Creditflux.
Click here to read the full Termgrid article “The Rise of Private Credit CLOs.”
