Clearlake Capital Group has reported that its credit division, Clearlake Credit, will take over the management of the collateralized loan obligations (CLOs) that were under the management of LCM Asset Management, LLC. With these, Clearlake will further deepen its footprint in the credit investment industry.
The deal will greatly broaden the scope of Clearlake Credit’s CLO platform, bringing in 31 CLOs that represent a total of over $5 billion in assets under management (AUM). As a result, Clearlake Credit’s combined assets under management will rise to around $39 billion, covering liquid credit, private credit, and tailored credit investment solutions.
Strengthening Credit Investment Capabilities
The acquisition represents another step in Clearlake’s broader strategy to enhance its integrated credit platform and diversify its investment offerings. By adding a sizable portfolio of CLO assets, the firm gains additional scale while broadening its capabilities across structured credit markets.
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The expanded platform is expected to strengthen Clearlake Credit’s ability to serve institutional investors seeking diversified credit exposure and tailored investment solutions across varying market environments.
Enhancing Investor Relationships and Market Reach
Beyond increasing assets under management, the transaction is designed to deepen Clearlake’s relationships with institutional investors and expand its reach within the credit investment ecosystem.
The addition of the CLO portfolios aligns with the firm’s client-focused investment approach, providing greater flexibility to deliver a broad range of credit strategies while pursuing attractive risk-adjusted returns throughout market cycles.
Growing Presence in the CLO Market
Collateralized loan obligations remain an important segment of the institutional credit market, offering investors exposure to diversified pools of leveraged loans through structured investment vehicles. By assuming management of these 31 CLOs, Clearlake Credit significantly expands its footprint in this asset class and enhances its ability to provide scalable credit solutions to investors.
Transaction Advisors
Milbank LLP and Dechert LLP served as legal advisors to Clearlake Credit on the transaction. GreensLedge Capital Markets acted as financial advisor to the seller.
With the addition of LCM Asset Management’s CLO portfolio, Clearlake Credit continues to build scale across its credit platform while reinforcing its commitment to delivering diversified investment opportunities and long-term value for institutional clients.
