Sycamore Tree closes eighth CLO at $504M, its fourth straight above $500M
What's the deal? Sycamore Tree Capital PartnersDealroom has a profile for this one. Try Dealroom → has closed its eighth collateralized loan obligation, STCP 2026-8, a $504 million vehicle investing in the broadly syndicated loans of US companies. The Dallas-based credit specialist completed the deal with Bank of America and participation from a global institutional investor base.
The details: The fund carries a five-year investment period, a two-year non-call provision, and a triple-A tranche spread of SOFR plus 125 basis points. It is Sycamore Tree's 14th transaction overall and its fourth consecutive CLO issued at $500 million or larger.
Why now? Sycamore Tree said it used recent loan market volatility to deploy capital, with the fund largely invested at close. "Our experienced team capitalized on loan market volatility to deploy capital at attractive relative value," said Jon Poglitsch, partner and head of credit research.
What's the endgame? The deal is the firm's third fund built to comply with European risk retention rules and the third new issue completed with participation from Sycamore Tree CLO Fund II, as it expands its presence in the European market. Partner Scott Farrell said the firm looks forward to "building this relationship" with Bank of America.
The signal: The $504 million close lands in line with Sycamore Tree's sixth and seventh CLOs, which each priced at about $505 million in 2025 — a steady continuation of its issuance program rather than an outsized raise. It comes as the wider US CLO market runs below last year's pace, with KBRA citing year-to-date issuance through August down about 20% on weaker loan supply and tougher deal economics, even as tight funding spreads keep supporting new deals.
Read more: markets.financialcontent.com
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