Sycamore Tree Capital Partners has closed its eighth collateralized loan obligation, a $504 million vehicle investing primarily in broadly syndicated loans issued by U.S. companies.
The fund, STCP 2026-8, represents Sycamore Tree’s 14th transaction overall and its fourth consecutive CLO issuance of at least $500 million.
STCP CLO 8 has a five-year investment period and a two-year non-call provision.
The triple-A tranche was priced at a spread of SOFR plus 125 basis points.
The transaction is also the third Sycamore Tree fund structured to comply with European risk retention requirements as the alternative credit manager continues broadening its institutional investor base.
STCP CLO 8 is the third new issue featuring participation from Sycamore Tree CLO Fund II.
The Dallas-based firm said the transaction reflects the continued expansion of its CLO platform and participation from institutional investors across multiple markets.
Sycamore Tree invests across bank loans, high-yield bonds, structured credit, and credit secondaries.
The firm was founded by Mark Okada, Trey Parker, and Jack Yang and operates from offices in Dallas and New York City.
Sycamore Tree said the portfolio was largely invested at closing after its investment team used volatility in the syndicated loan market to deploy capital at what it considered attractive relative values.
The firm’s approach emphasizes fundamental credit analysis, portfolio quality, and capital preservation while identifying opportunities across alternative credit markets.
Bank of America worked with Sycamore Tree on the latest transaction.
The new issuance extends a run of CLO transactions exceeding $500 million and further builds the firm’s structured credit platform as it expands relationships with global institutional investors.
KEY QUOTES:
“We appreciate the continued support of our investor relationships, partnering with us on STCP CLO 8.”
Paul Travers, Partner And Portfolio Manager At Sycamore Tree Capital Partners
“We’re delighted to have partnered with Bank of America on this transaction and look forward to building this relationship in the future.”
Scott Farrell, Partner And Head Of Structured Credit At Sycamore Tree Capital Partners
“Our experienced team capitalized on loan market volatility to deploy capital at attractive relative value, and the Fund is largely invested at close.”
Jon Poglitsch, Partner And Head Of Credit Research At Sycamore Tree Capital Partners
