Comvest Credit Partners Announces the Closing of Its Second Middle-Market CLO at $650 Million
Comvest Credit Partners, a leading provider of flexible direct financing solutions tailored for middle-market companies, has announced the successful closing of its second collateralized loan obligation (CLO), Comvest Credit 2024-2 CLO (“Comvest CLO-2”), with a total value of $650 million. This milestone follows the firm’s debut CLO vehicle, which was launched in July 2024. The new CLO demonstrates Comvest’s continued efforts to expand its alternative credit platform and further strengthen its position in middle-market direct lending.
Expanding Comvest’s Alternative Credit Platform
Comvest Credit Partners has built a strong reputation for its expertise in middle-market credit investment management, providing tailored financing solutions to businesses that require flexible and strategic capital. By launching its second CLO, the firm underscores its commitment to enhancing its financial product offerings while meeting the needs of investors seeking diversified exposure to middle-market credit opportunities.
“We continue to leverage Comvest’s longstanding expertise in middle-market credit investment management to expand our alternative credit platform with products that help achieve our fund finance objectives,” said Jason Gelberd, Partner, Chief Operating Officer, and Co-Head of Direct Lending for Comvest Credit Partners. “We believe access to the CLO market provides an efficient and cost-effective portfolio leverage management tool that also diversifies our funds’ financing base. We are thankful for the confidence of our new and existing investors in our approach.”
Comvest’s focus on direct lending has allowed it to develop innovative financing solutions that cater to middle-market companies, which often face limited options in traditional capital markets. Through CLOs, the firm enhances its ability to offer competitive and scalable financing while providing institutional investors with access to a curated portfolio of senior secured loans.
Structure and Investment Strategy of Comvest CLO-2
Comvest CLO-2 is structured to provide investors with a diversified portfolio of senior secured loans, carefully originated and actively managed by Comvest Credit Partners. The CLO is rated by Standard & Poor’s and features a three-year reinvestment period and a two-year non-call period, allowing for optimized asset management and investment flexibility.
Senior secured loans are a fundamental asset class in CLO structures, providing investors with a well-collateralized and stable yield. The loans included in Comvest CLO-2 are sourced from middle-market borrowers, reflecting the firm’s expertise in underwriting and managing credit risk in this segment. The structured nature of CLOs allows investors to participate in tranches with varying levels of risk and return profiles, catering to different investment preferences and risk appetites.
Investor Confidence and Market Growth
The successful closing of Comvest CLO-2 highlights the growing investor confidence in Comvest Credit Partners’ direct lending platform and its ability to navigate complex credit markets. CLOs remain a preferred investment vehicle for institutional investors, given their structured approach to risk management and return generation.
In recent years, the middle-market CLO sector has gained momentum as investors seek alternative sources of yield in an environment of fluctuating interest rates and economic uncertainties. CLOs provide a compelling opportunity for investors to gain exposure to a diversified pool of secured loans while benefiting from professional credit management. By expanding its CLO offerings, Comvest is well-positioned to capitalize on this trend and further scale its financing capabilities.
Jason Gelberd emphasized the strategic importance of the CLO market in supporting Comvest’s broader fund finance objectives. “Our expansion into the CLO market aligns with our long-term vision of enhancing portfolio leverage efficiency while providing investors with robust and differentiated credit investment opportunities. We are committed to maintaining a disciplined investment approach and delivering strong risk-adjusted returns for our stakeholders.”
Key Partners and Transaction Execution
Executing a successful CLO transaction requires collaboration with experienced financial institutions that specialize in structuring and distributing securitized credit products. In the case of Comvest CLO-2, Deutsche Bank Securities Inc. served as the Lead Arranger, playing a crucial role in structuring the transaction and coordinating investor participation.
GreensLedge Capital Markets LLC plc acted as the Co-Placement Agent, contributing to the placement and distribution efforts to ensure broad investor engagement. The participation of these leading financial institutions underscores the credibility and market confidence in Comvest Credit Partners’ CLO program.
Impact on Middle-Market Lending and Future Outlook
Comvest Credit Partners’ continued expansion into the CLO market is expected to have a positive impact on middle-market lending by enhancing liquidity and financing accessibility for businesses in this sector. As demand for tailored financing solutions grows, Comvest is well-positioned to meet the evolving needs of borrowers while providing institutional investors with attractive investment opportunities.
The firm’s strategic focus on middle-market lending aligns with broader market trends that indicate an increasing reliance on non-bank financial institutions for capital solutions. With banks facing regulatory constraints and traditional lending channels becoming more selective, direct lenders like Comvest are stepping in to bridge the financing gap for middle-market companies.
