Sculptor Launches Captive CLO Equity Platform with Anchor Commitment from Rithm Capital
18 Abril 2024 - 10:00AM
Business Wire
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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version on businesswire.com: https://www.businesswire.com/news/home/20240418699670/en/
Sculptor Heather Lucania 646-826-5752
investorrelations@sculptor.com Sculptor – Media Relations
Jonathan Gasthalter Gasthalter & Co. 212-257-4170
sculptor@gasthalter.com Rithm - Investor Relations
212-850-7770 ir@rithmcap.com Rithm – Media Jon Keehner /
Sarah Salky / Erik Carlson Joele Frank, Wilkinson Brimmer Katcher
212-355-4449 ritm-jf@joelefrank.com
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