Sculptor’s Latest US CLO XXIII Closes with $406m
Further Expanding Sculptor’s $15bn AUM Institutional Credit Strategies
Sculptor Capital Management, Inc. (“Sculptor”) today announced the launch of Sculptor Loan Financing Partners, the firm’s captive CLO equity investment platform, anchored by a commitment from Rithm Capital Corp. (NYSE: RITM; “Rithm”). Sculptor Loan Financing Partners will manage investments in the equity tranches of Sculptor managed CLOs in the US and Europe, and expands the firm’s Institutional Credit Strategies business, which oversees approximately $15 billion in assets under management.
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Sculptor also today announced the close of a $406 million US CLO, Sculptor CLO XXXII (“CLO 32”). A controlling equity stake in CLO 32 was pre-placed to Rithm through the Sculptor Loan Financing Partners platform, with a diverse group of leading global institutions invested in the minority equity and rated notes.
Brett Klein, Global Head of Corporate Credit at Sculptor, commented “Over the last decade plus, we have developed a highly successful global institutional credit business with a strong track record of providing a diverse set of institutional investors with comprehensive investment solutions across the capital structure. We are thrilled to close our first US CLO transaction since partnering with Rithm. The significant demand we received from third-party investors for CLO 32 reinforces the benefits of our decision to launch a captive CLO equity platform.”
“We are excited to support the expansion of Sculptor’s Institutional Credit Strategies through our commitment to the firm’s CLO equity platform,” said Michael Nierenberg, Chairman, Chief Executive Officer, and President of Rithm Capital. “The new platform allows us to be nimble in accessing the CLO market when opportunities arise while continuing to scale Sculptor’s global CLO business across the US and Europe. This strategic investment demonstrates the value proposition that the combined Rithm-Sculptor franchise brings to investors.”
Sculptor CLO 32 is backed by a fully ramped $400 million portfolio of primarily senior secured loans as of closing and will have a five-year reinvestment period and a two-year non call period. Sculptor CLO 32 builds upon Sculptor’s ability to take advantage of current market conditions and actively manage its suite of CLOs. Since the start of 2024, Sculptor has also refinanced three CLO transactions, achieving a more efficient cost of capital for existing investors.
Josh Eisenberger, Head of US CLO Management at Sculptor, said, “We are pleased to have closed Sculptor CLO 32 along with three refinancing transactions so far in 2024. The support from both new and existing investors as well as the competitive pricing achieved is a testament to our longstanding investment approach and expertise in CLO management. We believe market conditions are supportive of continued positive momentum for our CLO business and we are excited about the continued growth of Institutional Credit Strategies.”
Sculptor has a long track record of managing CLOs through multiple credit cycles, and with the closing of CLO 32, has issued 42 CLOs & CBOs across the US and Europe since 2012. Sculptor’s CLO business benefits from its extensive experience and track record across asset classes, and embedded partnership with its global opportunistic credit businesses. Collectively, as of March 31, 2024, Sculptor manages $24 billion in credit assets globally across a broad range of strategies leveraging its core capabilities in corporate, asset based, and real estate credit.
About Sculptor
Sculptor is a leading global alternative asset manager and a specialist in opportunistic investing. For over 25 years Sculptor has pursued consistent outperformance by building an operating model and culture which balance the ability to act swiftly on market opportunity with rigorous diligence that minimizes risk. Sculptor’s model is driven by a global team that is predominantly home-grown, long tenured and incentivized to put client outcomes first. With offices in New York, London, Hong Kong, and Shanghai, the Firm invests across credit, real estate, and multi-strategy platforms in all major geographies. As of March 31, 2024, Sculptor had over $32 billion in assets under management. For more information, please visit our website (www.sculptor.com).
About Rithm Capital
Rithm Capital (NYSE: RITM) is a global asset manager focused on real estate, credit and financial services. Rithm makes direct investments and operates several wholly-owned operating businesses. Rithm’s businesses include Sculptor Capital Management, Inc., an alternative asset manager, as well as Newrez LLC, and Genesis Capital LLC, leading mortgage origination and servicing platforms. Rithm seeks to generate attractive risk-adjusted returns across market cycles and interest rate environments. Since inception in 2013, Rithm has delivered approximately $5 billion in dividends to shareholders. Rithm is organized and conducts its operations to qualify as a real estate investment trust (REIT) for federal income tax purposes and is headquartered in New York City.
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