Clearlake Capital Raised $1 Billion in New CFO
The private equity firm secured the capital through a restructured collateralised fund obligation vehicle.
Updated on Sept. 30, 2026 in Corporate Finance
Live Poll
Do you trust that complex private equity debt arrangements prioritize the interests of everyday investors?
Clearlake Capital Group has successfully raised $1 billion through a new collateralised fund obligation (CFO). The transaction was revised following investor feedback to reduce leverage and optimize pricing.
Why it matters
Investors previously expressed concerns regarding the leverage levels in an earlier version of the deal. By restructuring the asset mix, Clearlake was able to improve the terms of the securitisation for its participants.
The vehicle includes $600 million in private credit, $200 million in secondaries, and $200 million in private equity stakes. Class A bonds were priced at 285 basis points over the Secured Overnight Financing Rate.
The players
Clearlake Capital Group
Clearlake Capital Group is an investment firm that manages private equity, credit, and other capital solutions.
Goldman Sachs
Goldman Sachs is a leading global investment banking and financial services firm that acted as the structuring and placement agent.
The details
Goldman Sachs served as the sole structuring and placement agent for the transaction, which backs $775 million of debt securities with a $225 million equity tranche. The equity portion is expected to generate an internal rate of return of approximately 18%.
Timeline
September 30, 2026
Market Landscape
This transaction reflects the growing utilization of collateralised fund obligations to manage liquidity and leverage within private credit portfolios. By restructuring the deal to satisfy investor demands, Clearlake aligns itself with competitive standards for institutional fund management.
This deal primarily impacts institutional investors and limited partners involved in Clearlake's private credit and equity funds. It highlights a shift toward more cautious leverage structures in private market vehicles, potentially signaling a trend of greater negotiation power for investors.
The takeaway
The successful pricing of this CFO demonstrates that institutional investors are increasingly prioritizing lower leverage in structured credit deals. Firms that proactively address these concerns are finding a path to secure multi-billion dollar capital raises.
Further reading
For more on how firms manage capital structures, explore the Corporate Finance section.
Source note: This article includes information reported by Private Equity Wire.
Live Poll
Do you trust that complex private equity debt arrangements prioritize the interests of everyday investors?
