Alternative Credit Manager Sycamore Tree Closes Second CLO at $404.5M

Sycamore Tree Capital Partners, an asset manager specializing in private and alternative credit investments has closed its second collateralized loan obligation (CLO) fund in the past three months – STCP CLO 2 – totaling $404.5 million.

STCP CLO 2 has a three-year reinvestment period and a one-year non-call period. The fund attracted support from banks, insurance companies and asset managers.

The strategy for the second fund is similar to Sycamore Tree’s debut fund, which totaled $403.5 million, as it will invest in “higher quality, more liquid, broadly syndicated US loans across a wide range of industries,” according to Paul Travers, Managing Director and Portfolio Manager.

The closing of STCP CLO 2 brings Sycamore Tree’s total assets under management to approximately $1.3 billion across its various credit strategies. The firm closed its first CLO, Sycamore Tree CLO 2021-1, in November.

“We greatly appreciate such broad participation from the debt investor community for our second offering. Given our access to committed CLO equity capital, we expect to be a disciplined, repeat new issuer,” added Scott Farrell, Managing Director and Head of Structured Credit.

Based in Dallas, TX and founded by Mark Okada, Trey Parker and Jack Yang, the firm’s investment strategies include bank loans, high yield bonds, structured credit and special situations.

Citibank Securities acted as the fund’s underwriter, and Dechert, LLP acted as counsel to Sycamore Tree.