A CLO is financed by a series of tranches rated from AAA to BB and equity held by investors. The ratings of the debt tranches are a function of a specific tranche’s priority to receive income and, or losses related to the loan portfolio as illustrated below.
CLOs have been issued to institutional investors for over 25 years, and today the US CLO market is approximately $700 billion (Source: Bloomberg).
Sycamore Tree’s Partners were pioneers in developing the CLO market, dating back to 1994. They originated and managed one of the first actively-managed CLOs and have been involved with numerous structural innovations and enhancements, having managed 30+ CLOs with over $23.5 billion of new issue AUM, including their time at prior firms.Meet Our Team