Sycamore Tree Capital Partners, L.P. is a value-oriented, durable-alpha investment firm specializing in alternative credit. Founded by industry veterans Mark Okada, Trey Parker and Jack Yang, the firm has deep experience across economic and market cycles. Headquartered in Dallas, TX with an office in New York City, the firm’s investment expertise includes bank loans, high yield bonds, structured credit and special situations. Sycamore Tree Capital Partners, L.P. is committed to a diverse and inclusive culture that embodies the following key principles: client-focus, teamwork, excellence, integrity and humility.
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Strategies
Senior LoansPrivate Debt
Senior loans, also referred to as bank loans and, or leveraged loans, are debt obligations issued by non-investment grade corporations to finance their operations, support business expansion, and refinance debt. Sycamore Tree Capital’s leadership have played prominent roles over the past three decades in developing the senior loan market at both industry-leading Wall Street banks and specialist investment management firms and are among the most experienced investors in senior loans. Our investment process is a methodical and collaborative process that leverages the firms’ significant experience and resources. Investment decisions are made with the input of research, portfolio management, trading and investment committees in order to assess relative value within and across the markets.
CLOsPrivate Debt
A Collateralized Loan Obligation (CLO) is an actively managed securitization backed by a portfolio of usually 150-250 below investment-grade, floating rate senior loans. Sycamore Tree’s Partners were pioneers in developing the CLO market, dating back to 1994. They originated and managed one of the first actively-managed CLOs and have been involved with numerous structural innovations and enhancements, having managed 35+ CLOs with over $25 billion of new issue AUM, including their time at prior firms. Our investment process is a methodical and collaborative process that leverages the firms’ significant experience and resources. Investment decisions are made with the input of research, portfolio management, trading and investment committees in order to assess relative value within and across the markets.
Special SituationsSpecial Situations
Our Special Situations strategy involves partnering with companies experiencing operational and/or financial issues, which are materially undervalued based on our credit analysis. Our objective is to work with management to create value by providing debt and equity solutions, while managing risk through seniority, structure and collateral. At any point in the economic cycle, these companies may be undervalued as markets react to a variety of potential events, such as a company having weaker than expected financial performance, pending debt maturities, operational issues or ratings downgrades. Our deep credit research and structural review analyzes a company’s cash flow, collateral, enterprise value and competitive position to assess the ability to repay its debt both as an ongoing business concern and in a potential operational and/or financial restructuring process. Our investment process is a methodical and collaborative process that leverages the firms’ significant experience and resources. Investment decisions are made with the input of research, portfolio management, trading and investment committees in order to assess relative value within and across the markets.
Multi-Strategy CreditPrivate Debt
Multi-strategy involves managing investments from more than one asset class, region, credit risk or liquidity profile in an integrated portfolio. The ability to manage assets both within and across markets enhances the ability to manage risk, particularly when markets are volatile. This multi-strategy, more tactical approach leverages the manager’s capabilities and provides a more nimble solution to asset allocation versus conventional, investor-driven, single strategy decisions. Our firm’s leadership has significant experience identifying value within and across the credit markets. Our team has experience managing multi-strategy portfolios as commingled portfolios and as customized solutions. Our investment process is a methodical and collaborative process that leverages the firms’ significant experience and resources. Investment decisions are made with the input of research, portfolio management, trading and investment committees in order to assess relative value within and across the markets.
Structured CreditPrivate Debt
Structured Credit consists of active, value-oriented investing in third-party CLO debt and equity. The CLO market is a highly specialized marketplace where a combination of credit, structuring, and documentation skills are needed to assess risk and identify value. As such, the market can demonstrate significant inefficiencies and opportunities. Sycamore Tree’s leadership has decades of experience investing in senior loans, managing CLOS and investing in CLO debt and equity in the new issue and secondary markets. We have longstanding relationships with Wall Street originators and a unique ability to evaluate fund managers and underlying investments. Our investment process is a methodical and collaborative process that leverages the firms’ significant experience and resources. Investment decisions are made with the input of research, portfolio management, trading and investment committees in order to assess relative value within and across the markets.
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