The LSTA and DealCatalyst present: The Middle Market CLOs and Direct Lending Conference.
Hosted in partnership with the LSTA, this inaugural Middle Market CLO and Direct Lending conference provides an opportunity for the market to network and discuss these important trends in middle market financing.
The program is drafted in consultation with LSTA leadership, and the Middle Market CLO/Direct Lending Advisory Board, ensuring timely and relevant content.
Historically, CLOs have been predominantly collateralized by Broadly Syndicated Loans (BSLs). As of late, however, there has been a marked uptick in middle market CLOs. Fueled by capital in-flows and the introduction of new market lenders providing collateral, 2021 was a banner year for new issuance totaling nearly $19 billion. Volumes are expected to remain robust in 2022 as Middle Market CLOs appeal to both managers and investors both as an area of diversification and as a structure that has shown resilience through the pandemic.
As an alternative to syndicated loans to fund small- to mid-market deals, direct lending activity by asset managers has similarly skyrocketed. As private debt matured, more lenders emerged. Institutional investors are increasingly attracted by higher yields, higher allocations, quicker execution, consistent risk-adjusted returns.