CLO Manger Corner Series: Sculptor Capital

The launch of Sculptor's captive CLO equity platform in April, secured by an anchor commitment from Rithm Capital Corp, is a "strong validation" of the firm's support of Sculptor's CLO management business as well as the ability to be "opportunistic and nimble" with capital.

Speaking to SCI, Adeel Shafiqullah, Head of European CLO Management at Sculptor, says: "Having access to committed CLO equity capital that is able to provide warehouse equity, and ultimately CLO equity, for Sculptor's CLO platform allows us to be responsive and flexible in a variety of market conditions. For example, we can be opportunistic in terms of being able to capture periods of dislocation in the market, as well be patient in terms of ramping and securitizing."

The launch of the captive CLO equity platform not only gives visibility to Sculptor's CLO issuance program and growth, Shafiqullah notes, but also provides an attractive combination of stable and flexible capital that can be deployed over a credit cycle. "The long-term and stable profile of CLO equity capital enables us to capture both the optimal asset purchasing period as well as the securitization period for issuing a deal."

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