Clearlake secures $1bn CFO financing after restructuring collateral mix
Clearlake Capital Group has raised $1bn through a collateralised fund obligation (CFO) backed by stakes in its private market funds, after restructuring the transaction following discussions with prospective investors, according to a report by Bloomberg.
Clearlake Capital Group has successfully secured $1 billion in financing through a collateralised fund obligation (CFO) after restructuring the transaction, as per a report by Private Equity Wire. The deal, which was revised following discussions with potential investors, now includes assets such as stakes in private market funds, a private equity secondaries fund, and another private equity fund stake.
The restructuring resulted in a reduction of leverage and improved pricing for the transaction, with Goldman Sachs acting as the sole structuring and placement agent. Clearlake's newly created vehicle will hold $600 million in private credit exposure, with the remaining $775 million secured through Class A, B, and C debt securities, and the equity tranche generating an expected internal rate of return of around 18%.
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