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Private credit funds are increasingly interested in purchasing discounted CLO loans, attracting LPs seeking to diversify their direct lending portfolios.
Sales of CLOs, which package leveraged loans into bonds, set records in 2024 as investors reinvested money from maturing bonds during a refinancing boom.
Roughly 98 percent of the loans in the CLO were pre-identified and consist of direct lending investments originated by Adams Street’s private credit team.