Clearlake Capital’s $100 Billion Credit Ambition: Strategic Acquisitions and Market Volatility Reshape Private Debt Landscape

As global credit markets navigate unprecedented volatility, Clearlake Capital Group emerges as one of private equity’s most aggressive consolidators, unveiling plans to triple its credit assets under management (AUM) to $100 billion within five years. This bold expansion strategy combines tactical acquisitions, innovative financing structures, and geopolitical risk hedging – positioning the Santa Monica-based firm at the forefront of the $1.7 trillion private credit revolution[11][12].

Architecting a Credit Powerhouse Through Strategic M&A

The MV Credit Acquisition: European Beachhead Established

Clearlake’s September 2024 acquisition of MV Credit from Natixis Investment Managers marked a pivotal moment in its credit expansion playbook. The $5.1 billion AUM transaction[3][8] delivered immediate scale in European direct lending, complementing existing U.S. capabilities through WhiteStar Asset Management (acquired 2020). Integration created a platform spanning 7 global offices with $57 billion in deployed credit capital[2][5].

“The MV Credit deal wasn’t just about assets – it bought domain expertise in European mid-market CLOs and sponsor relationships with firms like EQT and Cinven,” notes a London-based credit analyst familiar with both firms[3][10]. This continental foothold proves critical as 34% of Clearlake’s pipeline now targets European borrowers seeking alternative financing amid regional bank retrenchment[14].

WhiteStar Integration: Building CLO Manufacturing Capacity

Since acquiring WhiteStar in 2020, Clearlake has tripled its CLO issuance capacity to $4.2 billion annually[12]. The unit’s latest €332 million European CLO III issuance in Q3 2024 demonstrated ability to price senior tranches at SOFR+180bps despite volatile markets[10]. This structured credit expertise provides crucial balance sheet flexibility as 58% of Clearlake Credit’s 2025 deployments target rated tranche positions[5][8].

Market Volatility as Accelerant: The Dun & Bradstreet Case Study

Bridge Loan Gambit in Turbulent Markets

Clearlake’s $7.7 billion take-private of Dun & Bradstreet in April 2025 illustrates its nimble response to shifting capital markets. Originally structured with a $5.75 billion syndicated loan at SOFR+400bps[4], the firm pivoted to private lenders led by Ares Capital when tariff announcements widened BSL spreads by 127bps[14]. The revised $5.75 billion facility priced at SOFR+500bps with 2% OID demonstrated Clearlake’s willingness to pay for execution certainty[4].

Secondary Market Opportunities Emerge

CFO José Feliciano’s disclosure of “selective secondary loan acquisitions” aligns with Clearlake’s pandemic-era strategy of buying discounted paper during dislocations. Recent Form PF filings show $1.2 billion deployed since Q4 2024 into European senior secured loans at 86-92 cents on the dollar[14]. This countercyclical approach mirrors Apollo’s 2008 playbook, leveraging $4.2 billion in dry powder earmarked for opportunistic credit[8][11].

The $100 Billion Roadmap: Execution Challenges and Sector Bets

Asset Mix Projections

Clearlake’s target implies 22% CAGR in credit AUM through 2029. The firm’s latest investor presentation outlines:

• 60% growth in direct lending ($45-60bn target)
• 25% CLO capacity expansion ($12-15bn)
• 15% structured equity/special sits ($8-10bn)

Technology and healthcare sectors dominate the pipeline, representing 43% and 28% of 2025 originations respectively[5][9]. This aligns with Feliciano’s stated focus on “secular growth sectors with recession-resistant cash flows”[9].

Geopolitical Risk Mitigation

The firm’s Abu Dhabi and Singapore offices have sourced $2.1 billion in APAC credit deals since 2023, focusing on cross-border tech supply chain financing. Recent 13F filings reveal notable shorts in Chinese property credits hedged with long positions in Indian infrastructure debt[14].

Industry Implications: Reshaping the Private Credit Ecosystem

Consolidation Wave Accelerates

Clearlake’s M&A-driven growth mirrors broader industry trends – 78 private credit platform acquisitions occurred in 2024 alone[3][11]. The firm’s $90bn AUM warchest positions it to absorb mid-sized managers struggling with fundraising; market rumors suggest ongoing talks with a $7bn AUM Nordic direct lender[14].

Public Pension Partnerships Deepen

CalPERS’ $25bn climate-focused private markets initiative includes a $3bn mandate with Clearlake for sustainable infrastructure debt[7]. This follows similar partnerships with CDPQ and GIC, highlighting institutional appetite for scaled credit platforms with ESG integration capabilities[5][10].

Leadership’s Calculus: Feliciano and Eghbali’s Risk-Reward Framework

In a recent Bloomberg interview, Co-Founder Behdad Eghbali outlined three pillars of Clearlake’s credit strategy:

1. Cycle-agnostic sector focus (tech, healthcare, business services)
2. Capital structure arbitrage across 150+ sponsor relationships
3. Dislocation harvesting through proprietary secondary market models

The firm’s 2024 investor letter reveals a 19.3% gross IRR on credit investments since 2020, outperforming the Cliffwater Direct Lending Index by 420bps[8][12]. However, recent markdowns in European junior tranches (€0.87 on euro) suggest growing portfolio risk[14].

Conclusion: Private Credit’s New Order

Clearlake’s ambitious expansion reflects fundamental shifts in global finance: the erosion of traditional banking channels, institutional demand for yield alternatives, and private equity’s evolution into multi-strategy asset managers. Success hinges on navigating an increasingly crowded field – Blackstone, Ares, and Blue Owl all target $1 trillion credit AUM by 2030[11][12].

As Feliciano noted in a recent FT interview: “The next decade belongs to platforms that can deliver integrated capital solutions across cycles and geographies. Our $100bn target isn’t aspiration – it’s table stakes.”[8] With $32bn already deployed toward this goal, Clearlake’s credit ambitions may well redefine private markets’ pecking order.