Sculptor Launches Latest Fund to Buy Riskiest CLO Slices
- Firm is the latest to raise captive equity fund in CLO market
- Venture comes months after Rithm purchased the CLO manager
Sculptor is following other firms that have pursued similar strategies over the past 18 months.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
Alternative asset manager Sculptor Capital Management has launched a platform to invest in the riskiest tranches of collateralized loan obligations, which will count its new owner Rithm Capital Corp. as a key investor.
The venture, dubbed Sculptor Loan Financing Partners, will manage investments in the equity tranches of Sculptor’s own CLOs in the US and Europe, which package leveraged loans into securities of varying risk and size. It will be part of the firm’s institutional credit strategies business, which oversees about $15 billion in assets under management, according to a statement seen by Bloomberg.