Deerfield Capital Management is close to raising a new $300 million collateralized loan obligation called Market Square CLO. It will primarily consist of senior secured loans, but will also have a 15% bucket for second-lien loans. Officials at Deerfield declined comment.
Earlier this year John Brinckerhoff, managing director and director of portfolio management, said Deerfield would be rolling out up to five CDOs this year, including two CLOs (LMW, 2/18).
Deerfield has approximately $8.7 billion in assets under management with $7 billion in CDOs. Last year Nelson Peltz's Triarc Companies bought a 64% economic interest in Deerfield for $86.5 million and also invested $100 million to seed a credit-opportunity fund. In addition, last December Triarc completed a 144A private placement with some of the proceeds to be invested in CDO equity.