LevFin Insights: Q&A with Dinko Angelov, Audax Private Debt—middle market CLO equity demand on the rise
In a recent interview with LevFin Insights, Dinko Angelov, Managing Director at Audax Private Debt, shared his perspective on the current state of the middle market CLO market and what may lie ahead.
Key Takeaways:
Investor demand for middle market CLO equity is on the rise, with growing participation from hedge funds, family offices, and other nontraditional investors.
Japanese banks are emerging as active AAA buyers, broadening the top of the capital stack—even as many U.S. institutions remain on the sidelines.
Audax’s scale, experience, and flexible strategies provide a strategic advantage, enabling efficient cash management and stronger control over portfolio performance.
Portfolio quality remains resilient, supported by mid-single-digit revenue and EBITDA growth year over year.
Middle market CLO managers have greater flexibility to manage underperforming assets, including the ability to move them to affiliated funds—helping preserve structure, improve recoveries, and optimize returns.
Audax Private Debt is a leading private credit manager, with more than $25 billion in AUM, and a 25-year track record of delivering customized financing solutions to U.S. middle market companies.
Audax manages over $5 billion across 10 active middle market CLOs and has completed 15 CLO transactions to date. Its platform is supported by a portfolio of more than 465 companies and a consistent pipeline of investment opportunities. The firm’s diverse capital base—including CLOs, evergreen strategies, and other structured vehicles—provides flexibility to manage risk, optimize cash flow, and execute transactions with speed and scale across changing market conditions.
AUM is as of 3/31/2025, and is calculated as total gross assets (inclusive of assets held by special purpose financing vehicles) plus undrawn equity commitments (less any amounts outstanding on lines of credit which are expected to be paid down using undrawn equity).
