Sculptor Launches Captive CLO Equity Platform with Anchor Commitment from Rithm Capital

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.