Sycamore Tree Capital Partners, a specialist asset manager with private and alternative credit investment expertise, closed STCP CLO 2023-2, Ltd., the firm’s second collateralized loan obligation fund.
STCP CLO 2 totals $404.45 million and received broad support from the investor community including banks, insurance companies and asset management firms. The fund has a three-year reinvestment period and a one-year non-call period. Citibank Securities acted as the fund’s underwriter, and Dechert acted as counsel to Sycamore Tree.
“Consistent with Sycamore Tree’s first CLO, we continue to pursue capital preservation by focusing on higher quality, more liquid, broadly syndicated US loans across a wide range of industries,” Paul Travers, managing director and portfolio manager at Sycamore Tree Capital Partners, said. “This all-weather approach has been very resilient, notwithstanding the macroeconomic and market volatility of the past year.”
“We greatly appreciate such broad participation from the debt investor community for our second offering,” Scott Farrell, managing director and head of structured credit at Sycamore Tree Capital Partners, said. “Given our access to committed CLO equity capital, we expect to be a disciplined, repeat new issuer.”
This closing of STCP CLO 2 brings Sycamore Tree’s total AUM to approximately $1.3 billion across its various credit strategies. Sycamore Tree closed its first CLO, Sycamore Tree CLO 2021-1, Ltd., in November 2021.
