Sycamore Tree Taps Veteran to Launch Credit Secondaries Arm Amid Market Boom

DALLAS, TX – April 13, 2026 – Sycamore Tree Capital Partners, a specialist asset manager focused on alternative credit, announced today the launch of a new Credit Secondaries investment platform. The Dallas-based firm has hired industry veteran Robert O’Connor as Partner and Portfolio Manager to spearhead the initiative, a strategic move designed to capitalize on the explosive growth in a market reshaped by institutional investors’ urgent need for liquidity.

The launch positions Sycamore Tree to enter one of the most dynamic and rapidly expanding corners of the financial world. The credit secondaries market, once a niche strategy, has become an essential tool for both investors seeking to rebalance portfolios and fund managers looking to deliver returns in a complex economic environment. O'Connor, who brings 24 years of experience in secondaries and complex credit, will lead the platform, supported by Sycamore Tree’s existing team of 33 professionals.

The Liquidity Imperative Driving a $20 Billion Market

Sycamore Tree’s expansion is timed to meet a tidal wave of demand. The market for credit secondaries—transactions involving the sale of existing interests in private credit funds or portfolios of loans—is experiencing unprecedented growth. After nearly doubling in volume in 2024 to an estimated $10-11 billion, transaction volume is projected to surge past $18 billion in 2025, with some industry analysts forecasting it could reach $20 billion. Longer-term projections are even more aggressive, with estimates suggesting the market could exceed $40 billion by 2027.

This explosive growth is fueled by the sheer scale of the primary private credit market, which has ballooned to over $2 trillion in assets under management. Despite this size, the turnover rate in private credit secondaries remains below 1%, compared to nearly 3% in the more mature private equity secondaries space, signaling substantial runway for further expansion.

The primary driver behind this activity is a pressing need for liquidity among Limited Partners (LPs), such as pension funds and endowments. A slowdown in M&A and IPO activity has extended the life of many funds, resulting in lower-than-expected capital distributions. This has left many LPs over-allocated to illiquid private assets—a phenomenon known as the “denominator effect”—and eager to free up capital to rebalance their portfolios or commit to new funds.

At the same time, General Partners (GPs), who manage the funds, are increasingly using the secondaries market proactively. Rather than simply facilitating sales for their LPs, GPs are initiating complex transactions known as continuation vehicles (CVs). These deals allow them to move high-performing assets from an older fund into a new vehicle, providing liquidity to existing investors who wish to cash out while allowing others, along with new investors, to continue backing the assets. These GP-led transactions are rapidly gaining traction and are expected to constitute the majority of market volume, marking a significant maturation of the market.

A Strategic Play in a Competitive Field

For Sycamore Tree, the new platform is a calculated and synergistic expansion. Founded by industry veterans Mark Okada, Trey Parker, and Jack Yang, the firm has already built deep expertise in adjacent credit strategies, including bank loans, high yield bonds, and structured credit. The move into secondaries leverages this existing knowledge base and institutional infrastructure.

“Credit secondaries is a natural fit with our corporate and structured credit expertise and our focus on strategies that deliver attractive risk-adjusted returns and capital preservation,” said Mark Okada, Sycamore Tree’s Co-Founder & Chief Executive Officer, in a statement. The firm sees the strategy as a way to offer clients a comprehensive solution, providing diversified private credit exposure with the added benefits of enhanced liquidity and potentially accelerated cash flows.

However, Sycamore Tree is entering a competitive and increasingly crowded field. Major global asset managers like Ares Management, Blackstone, Coller Capital, and Pantheon have already established formidable presences, raising multi-billion dollar funds dedicated to the strategy. Recent blockbuster deals, including a $3.2 billion continuation vehicle for Crescent Capital Group and a $3 billion CV for TPG Twin Brook, underscore the scale at which the market's top players are operating. Sycamore Tree will be competing with these incumbents and a growing number of other new entrants for a finite pool of high-quality assets.

The firm's value proposition will rely on its specialized focus, its cycle-tested investment philosophy, and the expertise of its new leader.

A Veteran to Navigate a Complex Market

The success of the new platform will hinge significantly on the leadership of Robert O’Connor. His appointment signals Sycamore Tree's commitment to building a credible and high-impact presence in the space. With nearly two and a half decades of experience, O’Connor has a deep background in the precise disciplines required to succeed.

He joins the firm from Banner Ridge Partners, where as a Managing Director he was responsible for the day-to-day management of the DSCO Fund platform, which focused on distressed, special situations, and opportunistic credit. His role involved sourcing and executing primary, secondary, and co-investment commitments, giving him a holistic view of the private credit lifecycle. Before that, he spent approximately five years as a Managing Director at Drum Capital, a firm specializing in distressed and turnaround opportunities.

This background makes him uniquely suited to evaluate the seasoned and complex portfolios that characterize the secondaries market. Buyers in this space gain the advantage of avoiding the initial “J-curve” of negative returns typical of new funds and can assess portfolios of already-performing loans, but doing so requires sophisticated underwriting and risk management.

“Mark, Trey and Jack are cycle-tested investors and business builders, and I’m excited to build on that strong foundation as we add new resources and capabilities to support our clients,” O’Connor stated. He emphasized that the platform is focused on meeting investor needs for diversification and attractive returns, supported by the firm's relationships and lack of conflicting products.

As the credit secondaries market continues its institutionalization, evolving from a niche solution to a core portfolio management tool, the ability to navigate its complexities will be paramount. With a seasoned expert at the helm, Sycamore Tree is betting it can carve out a significant space for itself in this new frontier of alternative credit.