Sycamore Tree Capital Partners, an asset management firm known for its expertise in private and alternative credit investments, recently announced an exciting milestone: the closing of its seventh collateralized loan obligation (CLO), designated as STCP 2025-7. This latest fund, which has successfully raised an impressive $505 million, will focus on investing in the broadly syndicated loans of U.S. companies.
What’s particularly noteworthy is that the fund was initially targeted at $400 million, but due to overwhelming demand from investors, it was upsized to $505 million. This clearly reflects a strong confidence in Sycamore Tree’s investment strategy and the overall strength of the credit market.
STCP CLO 7 is significant for several reasons. First, it marks Sycamore Tree’s second new-issue CLO launched in 2025, indicating the firm’s active engagement in the market this year. Moreover, it is structured to comply with European risk retention regulations, showcasing Sycamore Tree’s commitment to adhering to critical regulatory standards.
This latest transaction also highlights the collaboration with the Sycamore Tree CLO Fund II, making it the second investment funded with their participation. Such partnerships are essential as they enhance resource pooling and diversification, ultimately benefiting investors.
Additionally, it’s worth noting that this transaction represents the firm’s sixth consecutive CLO that has closed at $500 million or more. This track record of substantial fund sizes underscores Sycamore Tree’s growing reputation as a reliable and effective investment manager in the CLO space. JPMorgan, a well-respected financial institution, served as the underwriter for this fund, further emphasizing the credibility and strength of the offering.
With STCP CLO 2025-7, Sycamore Tree Capital Partners continues to build on its legacy, demonstrating both resilience and adaptability in a dynamic investment landscape. As they move forward, it will be interesting to watch how this fund and the firm as a whole progress in addressing the needs of their investors while navigating the complexities of the market.
KEY QUOTES:
“We appreciate and thank the investors who have partnered with us on STCP CLO 7. International investors represent approximately 25% of the Fund’s debt, underscoring the growing global community investing in Sycamore Tree CLOs. Our priority remains consistent: to manage risk carefully and preserve capital for the benefit of both debt and equity investors.”
Paul Travers, Managing Director and Portfolio Manager of Sycamore Tree
