Market updates and sector developments

Sculptor Capital Management has launched Sculptor Loan Financing Partners, the firm’s captive CLO equity investment platform, anchored by a commitment from Rithm Capital Corp. 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 US$15bn in assets under management.

The move comes with the closing of a US$406m US CLO, Sculptor CLO XXXII, the first US CLO transaction issued by Sculptor since partnering with Rithm (SCI 26 July 2023). A controlling equity stake in the transaction was preplaced with Rithm through the Sculptor Loan Financing Partners platform, with a diverse group of leading global institutions invested in the minority equity and rated notes.

“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,” comments Michael Nierenberg, chairman, ceo and president of Rithm Capital.

Sculptor CLO 32 is backed by a fully ramped portfolio of primarily senior secured loans and features a five-year reinvestment period and a two-year non-call period. Since the start of 2024, Sculptor has also refinanced three CLO transactions, achieving a more efficient cost of capital for existing investors.

Corinne Smith