DALLAS–(BUSINESS WIRE)–Sycamore Tree Capital Partners, a specialist asset manager with private and alternative credit investment expertise, today announced the closing of STCP CLO 2024-5, Ltd., the Firm’s fifth and largest new issue collateralized loan obligation since launching its CLO platform in July of 2021.
STCP CLO 5 totals $504 million and received strong support from a broad range of new and existing institutional investors, including public pension funds, insurance companies and asset management firms. The Fund has a two-year reinvestment period, includes a one-year non-call period and features a senior triple-A spread of S+142 bps. Goldman Sachs acted as the Fund’s underwriter and Dechert, LLP served as counsel to Sycamore Tree.
“Our consistent focus on constructing quality investment portfolios and preserving capital continues to enhance Sycamore Tree’s standing among the global CLO investor community,” said Paul Travers, Managing Director and Portfolio Manager. “We greatly appreciate their trust and support.”
Additionally, the reset, extension and upsize of Sycamore Tree’s third CLO (“STCP CLO 3”) has also closed. Originally a $401 million fund issued in April 2023, STCP CLO 3’s weighted average cost of capital was reduced by 76 bps, its reinvestment period was extended by five years, and the Fund was upsized to $525 million. As part of the transaction, STCP CLO 3 will pay a special distribution.
“This opportunity to reset, extend and significantly grow CLO 3 is a testament to the Fund’s strong portfolio characteristics and ratings quality,” commented Scott Farrell, Managing Director and Portfolio Manager.
“CLOs provide investors with diversified exposure to bank loans, attractive optionality with regard to spreads and rates, the benefits of structural investment protections as well as stable, long-term financing,” added Trey Parker, Chief Investment Officer. “For these reasons, CLOs have been quite resilient during periods of market volatility.”
Having launched five distinct investment strategies to date, Sycamore Tree’s total firm assets under management now exceeds $2.5 billion.
About Sycamore Tree Capital Partners
Sycamore Tree Capital Partners is a value-oriented, durable-alpha investment firm specializing in alternative credit. Founded by industry veterans Mark Okada, Trey Parker and Jack Yang, the firm has deep experience across economic and market cycles. Headquartered in Dallas, TX, with an office in New York City, the firm’s expertise includes bank loans, high yield bonds, structured credit and special situations. For additional information, please visit www.sycamorelp.com.
