Amid rising interest from Europe-based investors, STCP 2025-6 is Sycamore Tree’s first CLO designed to comply with European risk retention regulations
Dallas, TX (March 31, 2025) – Sycamore Tree Capital Partners (“Sycamore Tree” or “the Firm”), a specialist asset manager with private and alternative credit investment expertise, today announced the closing of its sixth CLO, STCP 2025-6 (“STCP CLO 6” or “the Fund), a $505 million CLO investing in the broadly syndicated loans of US companies.
The Fund was initially offered at $400 million and increased to $505 million based on strong demand from investors. STCP CLO 6 is the first Sycamore Tree CLO that is intended to comply with European risk retention regulations. The Fund has a 5-year investment period and includes senior triple-A rated bonds with a coupon of S +120 bps. Upon closing, the Fund is over 90% invested in a diversified portfolio of liquid loans and is targeting to commence distributions in October 2025. Goldman Sachs acted as the Fund’s underwriter.
Since launching its CLO platform in July of 2021, Sycamore Tree has issued 6 CLOs and reset 3 of its CLOs totaling CLO assets under management of $2.8 billion. In aggregate, these offerings constitute a community of over 80 institutional investors, located in the United States, Asia and Europe that includes a broad variety of prominent banks, asset management firms, pension funds and insurance companies.
“We appreciate the strong and growing investor support for our offerings and thank the investors who partnered with us,” said Paul Travers, Managing Director and Portfolio Manager of Sycamore Tree. “Our objective is to consistently focus on risk management and capital preservation within our CLOs across market cycles for the benefit of our investors.”
“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.
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