Is CLO Outperformance Sustainable?


CLO Performance Report, August 2023

August 11, 2023

A portfolio of U.S. CLO equity and CLO BB debt securities should outperform HY bonds across a variety of potential future economic scenarios


The junior portion of the CLO capital structure has seen solid performance so far in 2023. Over the course of the past several months, Pretium has highlighted this outperformance and made the argument that CLO mezzanine securities were undervalued relative to HY single-name credit, supporting this latter point by comparing the currently wide CLO BB spreads to the historical spread relationship the two asset classes have traditionally maintained. Given the uncertainty surrounding where the economy and the Federal Reserve may go from here, we have received inquiry from our investor base as to whether or not we view this outperformance as sustainable. In summary, we believe it is. Pretium believes that current CLO mezzanine and equity pricing reflects worst-case assumptions related to forward defaults and recoveries. While Pretium expects loan default rates to rise and recovery rates to remain depressed, we believe that current CLO spread and yield levels more than compensate for the fundamental strain that credit markets have already begun to realize and are likely to continue to experience over the coming quarters (Exhibit 1 below).

CLO BBs and CLO equity provided +8.6% and +7.6%, respectively, in (non-annualized) total returns over the first six months of the year vs. just +4.8% for HY corporate bonds1. Pretium believes this strong YTD performance for CLO instruments is sustainable across a variety of possible forward market outcomes. The market environment in the first half of 2023 reflected only muted spread changes and close to flat point-to-point long-term interest rate moves. Thus, the strong 23H1 CLO results for that period reflect what we see as only slightly above average expected returns for a sector which entered the year offering particularly generous spreads and yields.

BB CLOs began 2023 with average yields of approximately 14%, reflecting SOFR margins at the time of over 900 basis points2. The strong total return for BB CLOs over the first half of 2023 largely reflected interest carry, as opposed to mark-to-market price gains which might have been harder to replicate in the future. By contrast, BB corporate bonds have yields-to-maturity of just 7%, with correspondingly smaller scope for carry returns (Exhibits 2-3 below).

To assess the sustainability of CLO outperformance going forward in greater detail, we review expected returns for CLOs across a range of possible future interest rate and macro-economic scenarios. Our analysis suggests that mezzanine CLOs should outperform generic HY corporate bonds over a short-term (e.g., 1-year) horizon across most scenarios, with an even higher probability of outperformance over a hold-to-maturity horizon. Long-term expected returns for CLO BBs remain elevated under adverse scenarios at current pricing levels due to the fact that the investments benefit from significant structural protections which allow for full principal repayment under all but the most extreme default and recovery rate assumptions (Exhibit 4 below).

While CLO BBs can provide long-horizon downside protection in deep recession scenarios, CLO equity can complement the profile of CLO debt by offering a return distribution with significant upside potential in scenarios involving only mild recession or recovery. Combined, a portfolio which incorporates both CLO equity and CLO debt securities produces a highly attractive distribution of returns across a range of potential future economic outcomes.

Interest Rate Scenarios and Their Impacts on CLO Returns

The scenarios we include in our analysis are:

  • 1. Follow Forwards (high probability). Current interest rate curve plays out in line with current forwards, inflation continues to move down from current spot levels but remains above 2% target, unemployment ticks up modestly and corporate earnings stay flat or see a muted pullback: a soft landing scenario in which credit will outperform vs. current pricing and realized defaults are slightly below the market baseline forecast.
  • 2. Higher for Longer (high probability). Interest rates stay higher for longer, remaining close to current spot levels, inflation comes down slightly but remains elevated, unemployment ticks up and corporate earnings stay flat or see a muted pullback: a soft landing scenario in which credit will marginally outperform vs. current pricing and defaults are in-line with the market baseline forecast.
  • 3. Stubborn Inflation (low probability). The Federal Reserve hikes rates over the next twelve months in response to stubborn inflation and strong corporate earnings, inflation remains unchanged vs.current spot levels and unemployment remains low: a short term bullish market for credit with default rates lower than forecast due to strong corporate earnings.
  • 4. Hard Landing (low probability). Material economic weakness emerges in the second half of 2023, inflation trails lower towards target and unemployment becomes elevated: a hard landing scenario for the economy and credit with short term and long term default rates above baseline forecasts and pulled forward.

Further detailed assumptions regarding these scenarios, including the assumed unemployment rate, inflation rate and short and longer term interest rates, are provided in Appendix A.

The calculations of expected CLO and corporate bond returns under the alternative scenarios incorporate both projected coupon income (e.g., with lower income for floating rate CLO instruments in falling rate scenarios) combined with, over the short horizon, expected mark-to-market price changes, and, over the longer term, potential realized credit losses.

Short-Term Outlook

Exhibit 5 below shows the estimated scenario returns over a one-year horizon holding period. In scenarios 1 to 3 the returns for BB CLOs are projected to significantly exceed those for BB corporate bonds. This outperformance is driven by higher coupon income for CLOs. In effect, the projected outperformance of CLOs in these scenarios mirrors the recent historical outperformance of CLOs vs. HY bonds, which has also been largely driven by superior carry for the CLOs.

For scenario 4, a Hard Landing, CLO BBs are projected to deliver lower returns than fixed rate HY bonds. This modeled underperformance is a consequence of an expected decline in CLO floating rate coupons as the Federal Reserve cuts interest rates in response to an economic contraction, combined with an assumption that generic fixed rate bond spreads widen less sharply than CLO BB spreads into the contraction.

The short-term CLO equity performance estimates shown in Exhibit 5 are calculated from the cash-on-cash equity yields expected in these scenarios combined with expected instrument price changes; the price change estimates, in turn are estimated based on the historical relationships between CLO equity and HY bond prices across different market environments. In scenarios 1 to 3, CLO equity is projected to significantly outperform BB corporate bonds as high current carry is offset by only marginal changes in cash flow discount yields. Near-term changes to discount rates remain range-bound as default expectations over the first year are primarily constructed from credits that are already identified as candidates for default as a function of their current trading price. In scenario 4, CLO equity is projected to underperform as the pull-forward of defaults in credits that are currently trading above $90 is likely to result in a downward revision to forward cashflow projections combined with an increase in market yields used to discount the cashflows.

Hold-to-Maturity Outlook

Exhibit 6 shows the expected hold-to-maturity returns for the different asset classes across scenarios. Here, CLO BBs are projected to outperform HY BB bonds across all the scenarios, including the Hard Landing. Historically, only a small percentage of BB CLOs have ever experienced principal losses, including during the global financial crisis period, due largely to the structural protections from which the bonds benefit3. Accordingly, we project no CLO BB losses under the four scenarios considered. Generic HY corporate bonds lack these structural protections and hence, are projected to experience small but non-zero performance drags due to defaults, which are modeled here as ranging from a 0.1% annualized yield degradation in the more benign scenarios to a 0.3% yield impairment in the Hard Landing scenario. Most of the projected BB CLO vs. BB corporate bond outperformance though, comes not from differences in credit loss assumptions but rather, from the substantially wider spreads CLO BBs currently contain, which helps generate much stronger carry income over the lives of the respective bonds.

While CLO debt is seen in Exhibit 6 to provide high prospective yields and significant long-horizon downside protection, CLO equity offers a return distribution with significant upside potential in scenarios involving milder recession or recovery. For example, in the Follow Forwards scenario, CLO equity would be expected to deliver a 17% annualized return. Combined, a portfolio incorporating CLO equity and CLO BB securities can produce a risk-return profile superior to those available in public equity or single-name HY credit markets.

The hold-to-maturity CLO equity performance estimates in Exhibit 6 are based on IRR calculations which project CLO equity cash flows under the alternative scenarios. The modeled CLO equity held-to-maturity return is lowest in the Hard Landing scenario, in which loan default rates are assumed to be relatively elevated and CLO equity cash flows are consequently reduced. Lower interest rates in this scenario also put downward pressure on CLO equity cash flows in this adverse scenario. Even in the Hard Landing scenario however, we project a portfolio of CLO equity securities to ultimately deliver low double-digit IRRs given the currently favorable pricing of these instruments


Our analyses suggest that the strong total returns delivered by CLO mezzanine debt and equity securities in the first half of 2023 are sustainable going forward given current pricing. An analysis of the projected returns for CLOs vs. fixed rate HY corporate bonds suggests that CLOs should outperform over a 1-year horizon across most economic scenarios, with outperformance even more probable over longer holding periods. Pretium believes the attractive relative value provided by a portfolio of CLO equity and CLO BBs clearly indicates that CLOs should be an integral component for every allocator looking to optimize their corporate credit exposure in this environment.

Appendix A — Economic scenario assumptions

1 Source: Bank of America, Bloomberg, JPM, data as of June 30, 2023.
2 Source: JPM CLOIE, data as of July 17, 2023.
3 Source: “CLO Performance”, Federal Reserve Bank of Philadelphia, WP 20-48, November, 2021.


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Pretium’s Credit investment strategies are focused on corporate credit, structured products collateralized by corporate credit, and legal opportunities financing. The team invests in broadly syndicated loans, as well as securities issued by CLOs. Investments in non-investment grade companies are subject to greater risk of loss of principal and interest than higher-rated investments and are generally considered to be predominantly speculative with respect to the issuer’s capacity to pay interest and repay principal. Litigation finance depends on whether the cases in which the fund invests will be successful, will pay the targeted returns and will pay those returns in the anticipated time. Assessing the values, strengths and weaknesses of a case is complex and the outcome is not certain. Should cases, claims, defenses or disputes in which the fund invests prove to be unsuccessful or produce returns below those expected, the performance of the fund could be materially adversely affected. Furthermore, laws and professional regulations in litigation funding can be complex and uncertain and details of certain cases are unlikely to be disclosed because of confidentiality and other restrictions.

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Recipients should note that COVID-19 has, among other things, significantly diminished global economic production and activity of all kinds and has contributed to both volatility and a decline in all financial markets. The ultimate impact of COVID-19 — and the resulting precipitous and near-simultaneous decline in economic and commercial activity across several of the world’s largest economies — on global economic conditions, and on the operations, financial condition and performance of any particular industry or business, is impossible to predict, although ongoing and potential additional materially adverse effects, including a further global or regional economic downturn (including a recession) of indeterminate duration and severity, are possible. The extent of COVID-19’s impact will depend on many factors, including the ultimate duration and scope of the public health emergency and the restrictive countermeasures being undertaken, as well as the effectiveness of other governmental, legislative and financial and monetary policy interventions designed to mitigate the crisis and address its negative externalities, all of which are evolving rapidly and may have unpredictable results. Even if and as the spread of the COVID-19 virus itself is substantially contained, it will be difficult to assess what the longer-term impacts of an extended period of unprecedented economic dislocation and disruption will be on future macro- and micro-economic developments, the health of certain industries and businesses, and commercial and consumer behavior.

Michael Campbell Joins Pretium as Senior Managing Director, Head of International Real Estate


Michael Campbell Joins Pretium as Senior Managing Director, Head of International Real Estate

July 13, 2023

Experienced Global Real Estate Investment Professional Will Expand Capabilities Outside of the United States

NEW YORK – July 13, 2023 – Pretium, a specialized investment firm with more than $50 billion in assets under management, today announced the addition of Michael Campbell as Senior Managing Director, Head of International Real Estate. In this newly created role, based in London, Mr. Campbell will lead the firm’s efforts to expand its real estate investing to markets outside of the United States and support international relationships.

“Pretium has been a leader in single-family rental housing in the United States for over a decade,” said Don Mullen, Founder and CEO of Pretium. “With the addition of Michael, our team is better positioned to explore international residential markets with attributes similar to the U.S. housing market, where we have been successful. We believe that our visionary and technology-driven investment approach applied to new global markets can unlock significant value for our stakeholders.”

Mr. Campbell brings to Pretium over 30 years of experience launching and growing real estate investment management platforms on a global scale, having previously held both institutional and entrepreneurial investment and advisory leadership roles across a variety of property sectors in North America, Latin America, Europe, the Middle East, and Asia. Prior to joining Pretium, Mr. Campbell spent nearly a decade spearheading the global real estate investment platform at Mubadala, where he was responsible for all international real estate investment activities.

“Expanding to markets in Europe and outside of the United States is a logical extension of our business given the opportunity for institutional investment in residential markets across the developed world,” said Josh Pristaw, Senior Managing Director, Head of Real Estate. “Michael brings compelling global real estate investment experience and relationships with international investors to our team. We are confident Michael is the right leader to support these new efforts and help drive our next phase of strategic growth.”

“It has been a privilege to work with a number of esteemed investor-fiduciaries in our industry. Pretium’s innovative approach coupled with the scale the firm has achieved since its founding are a testament to its talented team,” said Mr. Campbell. “I look forward to contributing to the expansion of our geographic footprint.”

Prior to his role at Mubadala, Mr. Campbell was Managing Partner at Phene Capital, a real estate investment boutique. Previously, he served as Chief Operating Officer and led all U.S. investment and operational activities at a European family office. He also served as a Managing Director and member of the real estate investment and operating committees at UBS Wealth Management, building and managing its diversified real estate investment management business, and as a Principal at JP Morgan as part of the original team to buildout its global private equity real estate businesses. He began his career at Ernst & Young and Arthur Andersen.

Mr. Campbell earned a Bachelor of Arts from Princeton University and a Master of Business Administration from Wharton School at the University of Pennsylvania.

About Pretium

Pretium is a specialized investment firm focused on U.S. residential real estate, residential credit, and corporate credit. Pretium was founded in 2012 to capitalize on investment and lending opportunities arising as a result of structural changes, disruptions, and inefficiencies within the economy. Pretium has built an integrated analytical and operational ecosystem within the U.S. housing, residential credit, and corporate credit markets, and believes that its insight and experience within these markets create a strategic advantage over other investment managers. Pretium’s platform has more than $50 billion of assets, comprising real estate investments across 30 markets in the U.S., and employs more than 4,000 people across 30 offices, including its New York headquarters, Dubai, London, Seoul, and Sydney. Please visit for additional information.


Jon Keehner / Kate Thompson / Lyle Weston
Joele Frank, Wilkinson Brimmer Katcher

Pretium’s Real Estate Team Expands by Adding Experienced Portfolio Manager Jason Lewis as Managing Director


Pretium's Real Estate Team Expands by Adding Experienced Portfolio Manager Jason Lewis as Managing Director

July 10, 2023

Pretium's Real Estate Team Expands by Adding Experienced Portfolio Manager Jason Lewis as Managing Director

NEW YORK, July 10, 2023 – Pretium, a specialized investment firm with more than $50 billion in assets under management, today announced that Jason Lewis has joined the firm as a Managing Director and Portfolio Manager on the Real Estate team. Mr. Lewis will be focused on the performance and expansion of Pretium’s single-family rental (“SFR”) vehicles.

Mr. Lewis brings over 15 years of experience in managing large, diversified real estate portfolios across product types and investment strategies. His experience spans portfolio construction, asset management, capital raising, performance measurement, and he has overseen more than $10 billion in investment transactions. Mr. Lewis joins Pretium from UBS Realty Investors, where he served as an Executive Director and Portfolio Manager. Before UBS, Mr. Lewis was the Head of Asset and Portfolio Management at CA Residential. He began his real estate career at Capri Capital Partners, LLC., most recently as a Partner, Head of Asset Management and lead portfolio manager for some of the firm’s largest separate accounts and commingled fund vehicles.

“The addition of Jason to our growing Real Estate team demonstrates the continued success of our strategy and our platform,” said Josh Pristaw, Senior Managing Director and Head of Real Estate at Pretium. “We are excited to welcome Jason to Pretium, and I am confident his expertise in executing winning portfolio management strategies and forming strong client relationships will be an asset to our firm.”

“Pretium is a leader in the single-family rental industry and has a strong track record of delivering value for its stakeholders,” said Mr. Lewis. “I am looking forward to partnering with such a talented team and to leveraging my experience as we expand the firm’s investment management capabilities, optimize portfolio performance for its global investor base and continue to pursue innovation within the housing sector.”

Mr. Lewis earned a Master of Business Administration, with a concentration in Real Estate and Finance from Columbia Business School and a Bachelor of Science in Mathematics from Morehouse College.

About Pretium

Pretium is a specialized investment firm focused on U.S. residential real estate, residential credit, and corporate credit. Pretium was founded in 2012 to capitalize on investment and lending opportunities arising as a result of structural changes, disruptions, and inefficiencies within the economy. Pretium has built an integrated analytical and operational ecosystem within the U.S. housing, residential credit, and corporate credit markets, and believes that its insight and experience within these markets create a strategic advantage over other investment managers. Pretium’s platform has more than $50 billion of assets, comprising real estate investments across 30 markets in the U.S., and employs more than 4,000 people across 30 offices, including its New York headquarters, Dubai, London, Seoul, and Sydney. Please visit for additional information.


Jon Keehner / Kate Thompson / Lyle Weston
Joele Frank, Wilkinson Brimmer Katcher

SCI Pretium – Mezz Opportunities


SCI Pretium - Mezz Opportunities

July 2023

Pretium structured credit and CLO liabilities MD Ian Wolkoff and Director Marty Young argue that mezzanine CLO bonds should be on the radar screens of most asset allocators with long investment horizons.

Mezz opportunities

Pretium structured credit and CLO liabilities MD Ian Wolkoff and Director Marty Young argue that mezzanine CLO bonds should be on the radar screens of most asset allocators with long investment horizons

US CLO mezzanine debt offers high expected return rates, with yields maintained under a default scenario more extreme than the GFC credit cycle and with upside potential in a market recovery scenario.

CLO debt offers strong long-run expected returns with bounded downside

In the current market context, macro uncertainty and the potential for a growth downturn loom large while valuations across many sectors still screen as relatively expensive. Given this set-up, asset allocators are searching even more actively than usual for investment opportunities which offer high potential yields but with contained downside protection in bearish scenarios. CLO mezzanine debt is a sector which appears to offer this combination.

The US CLO market has grown to over US$950bn in outstanding balance, with over US$160bn of balance in mezzanine (single-A through single-B) tranches. As a result, a CLO mezzanine debt strategy addresses a market large enough to allow investors to allocate selectively while still targeting high yields with contained risks.

Yields on CLO mezzanine debt securities have moved up sharply over the past two years; double-B CLO bonds purchased in the secondary market offer average lifetime quoted yields of 14.4% as of June 2023 versus 7.7% in mid-2021. The current baseline yields for double-B CLOs compare quite favourably to the yields available from other similarly rated fixed income assets: double-B leveraged loans and double-B corporate bonds, for example, currently yield just 7.6% and 7.2% respectively.

The extra yield earned by double-B CLOs versus double-B corporate bonds does not appear to reflect added default risk as the comparison holds debt ratings constant; indeed, during the 2008 financial crisis episode, CLO bonds had significantly lower default rates than similarly rated corporate bonds. CLO transactions are designed so that the bond classes can withstand elevated default rates on the underlying loan portfolios without taking principal losses; the double-B CLO bonds benefit from multiple structural protections, including overcollateralisation and excess spread that absorb losses before they can be passed to the double-B bonds.

A price-yield analysis of a double-B tranche from a sample 2021 vintage CLO transaction indicates that the double-B bond yield remains in double-digits under a scenario in which 28% of the underlying loan assets default over the next five years with a 60% recovery rate – a default intensity over 1.6 times the five-year cumulative default rate experienced following the global financial crisis. Indeed, the double-B tranche yield remains positive, even if the assumed five year cumulative loan default rate rises to 35%, more than 2x the level seen during 2007-2013. CLO double-B bond yields remain positive in this high default rate scenario, despite the fact that much of the bond principal would be projected to be written down in such an event, as the high projected coupon payments over the lifetime of the bond would compensate for the principal loss.

CLO debt offers upside potential in a market recovery scenario

Per above, double-B CLOs can offer around 14% yields under a moderate recession baseline scenario. The bonds can maintain these double-digit yields in a loss scenario comparable to that experienced during the global financial crisis and can continue to earn positive yields in scenarios significantly more extreme than in 2008. Thus, the long-run downside risk for the majority of bonds in the double-B CLO sector, while not zero, appears bounded.

At the same time, the bonds provide meaningful potential return upside in a scenario in which double-B CLO spreads partially normalise relative to their current wide levels. Double-B CLO spreads are currently trading 250bp above the level that would be predicted, given their historical relationship to high yield corporate bond spreads. If 60% of this pricing anomaly were to be slowly corrected over a two-year period, the double-B CLO horizon yields would be expected to reach around 18%, with 14% of the yield coming from coupon income and 4% from price appreciation.


Mezzanine CLO yields are currently elevated relative to the yields available on comparably rated corporate bonds. While CLO bonds may experience short-term mark-to-market price volatility, over a longer-term horizon, yields would be expected to remain in double-digits across a wide range of loss scenarios – including scenarios featuring default rates more extreme than those that were realised during the challenging 2007-2013 period.

At the same time, mezzanine CLO bonds offer realistic chances of return upside if bond spreads partially revert back to more historically typical levels. Given this favourable risk/return profile for mezzanine CLO debt, Pretium believes the sector should be on the radar screens of most asset allocators with long investment horizons.

Based on Pretium’s research, data and estimates from publicly available sources. Statements throughout these materials, including those regarding the market, represent the opinions and beliefs of Pretium. There can be no assurance that these will materialise.

This article was published in Structured Credit Investor on 28 June 2023.

Pretium’s Second State of ESG Report


Pretium's Second State of ESG Report

April 2023

The past year of our environmental, social, and governance journey features milestones for Pretium and our operating companies.

We believe sound ESG principles and practices can help maximize returns to our investors by having a positive impact on our employees, our residents, our borrowers, the communities in which we operate, and the businesses we serve.

HARMON Five Points Leasing Soon


HARMON Five Points Leasing Soon

January 19, 2023

Build-to-Rent Community by Crescent Communities and Pretium Expands Housing Choice in Desirable Market

First HARMON Community to be Certified by the National Green Building Standard

CHARLOTTE, NC and NEW YORK (January 19, 2023)Crescent Communities and Pretium are pleased to announce leasing will begin soon at HARMON Five Points, the fourth build-to-rent (BTR) community under development, and the second in Charlotte, as part of their previously announced joint venture. The community is comprised of 76 BTR homes with accompanying shared amenities. Progress Residential, Pretium’s single-family rental management services platform, is providing the leasing and property management services.

HARMON Five Points offers residents the option to rent three-story townhomes with three bedrooms, three and a half baths, outdoor balconies, private garages, and driveways. Interior finishes include modern, stainless-steel appliances, granite countertops, elevated flooring, spacious nine-foot ceilings, ample window exposure for natural light, and SMART home technology. The community is the first for the HARMON brand to be certified by the National Green Building Standard (NGBS), a residential building certification for sustainable construction and development. Each home is designed to be energy and water efficient, while offering residents a greater degree of comfort and lower utility bills.

Residents of HARMON Five Points will also have access to dedicated communal spaces such as a fire pit with outdoor lounge seating, a lawn area for gatherings and pets, and a direct connection to Five Points Park and Stewart Creek Greenway. HARMON Five Points is located two miles from Uptown and is walking distance from the Gold Line Streetcar.

“HARMON Five Points offers a much-needed new construction infill housing option to the historic West End neighborhood to accommodate the migration and population growth in Charlotte over the past several years,” said Tony Chen, Senior Managing Director of Single-Family Build-to-Rent at Crescent Communities. “We are pleased to have reached the leasing milestone ahead of schedule, and are also excited for the NGBS Bronze certification achievement. Stewardship is fundamental to Crescent Communities’ mission to build community and better people’s lives, and we are excited to extend our commitment to stewardship into our BTR platform through our goal of achieving NGBS Bronze or greater on each HARMON home. We strive to have a positive impact on the planet, people, and places we build and call home, and we look forward to seeing the HARMON Five Points community flourish.” 

“Pretium is a leading investor in homes throughout some of the most desirable areas across the country,  and we are thrilled to have another build-to-rent community welcome residents—bringing our total footprint in the Charlotte market to more than 5,300 homes and demonstrating our commitment to housing choice across growing regions,” said Matt Johnston, Managing Director and Head of Build-to-Rent at Pretium. “In addition to increasing housing access and offering consumers more choices, HARMON Five Points is delivering modern, sustainable homes that will be an important addition to the Charlotte community for years to come. We are committed to continuing our investments to increase the supply of move-in ready homes and contribute to the long-term health of our communities.”

HARMON Five Points is located at 360 Seldon Drive, Charlotte, NC, and was constructed by DRB Group. Additional partners include lender Atlantic Union Bank, landscape architect LandDesign and architectural review by 505Design. Progress Residential, which currently oversees more than 90,000 homes, is a market leader, with the people, technology, scale, and data-driven solutions that streamline operations, optimize asset performance, and provide an exceptional renting and living experience for residents.

Imagery of HARMON Five Points is available here and floorplans can be found here. For more information, please visit: and

About Crescent Communities

Crescent Communities is a nationally recognized, market-leading real estate investor, developer and operator of mixed-use communities. We create high-quality, differentiated residential and commercial communities in many of the fastest growing markets in the United States. Since 1963, our development portfolio has included more than 83 multifamily communities, 24 million square feet of commercial space and 60 single family master-planned communities. Crescent Communities has offices in Charlotte, DC, Atlanta, Orlando, Nashville, Dallas, Denver, Phoenix and Salt Lake City. Our residential communities are branded NOVEL, RENDER and HARMON by Crescent Communities and our industrial developments are branded AXIAL by Crescent Communities and our life science developments are branded THE YIELD by Crescent Communities.

About Pretium

Pretium is a specialized investment firm focused on U.S. residential real estate, residential credit, and corporate credit. Pretium was founded in 2012 to capitalize on investment and lending opportunities arising as a result of structural changes, disruptions, and inefficiencies within the economy. Pretium has built an integrated analytical and operational ecosystem within the U.S. housing, residential credit, and corporate credit markets, and believes that its insight and experience within these markets create a strategic advantage over other investment managers. Pretium’s platform has approximately $50 billion of assets, comprising real estate investments across 30 markets in the U.S., and employs more than 4,000 people across 30 offices, including its New York headquarters, Dubai, London, Seoul and Sydney. Please visit for additional information.

About Progress Residential

Progress Residential is a market leader in intelligent single-family rental management services, with people, technology, scale and data-driven solutions that streamline operations, optimize asset performance, and provide an exceptional renting and living experience for our residents. Progress Residential’s approximately 3,000 employees currently manage approximately 90,000 homes across 30 markets. Progress Residential also offers third-party property management service for investors with mid-to-large single-family rental home portfolios and Built to Rent communities through its Progress Residential Management Services. For more information, please visit

Sustainability Policy


Sustainability Policy

Published June 2022, updated January 2024

Our Approach to Sustainability

Pretium believes sustainability considerations can inform investment decisions and maximize financial value for our investors. The following principles guide our approach to investments, ownership, and operations:

  • Regular engagement of stakeholders, including our investors, employees, regulators, consumers, and communities in which we operate, on material sustainability factors
  • Driving assessment of material sustainability factors across our strategies
  • Incorporating sustainability considerations and solutions in our investment, ownership, and operations
  • Avoiding strategies that cause significant harm environmentally and/or socially and ultimately financially
  • Developing methods to disclose, benchmark, review and improve on our sustainability strategies year over year
  • Embracing a leadership role in sustainability practices within our relevant industries

Inclusion Policy


Inclusion Policy

Published June 2022, updated April 2024

Promoting an inclusive work environment can improve employee engagement and better decision-making, ultimately leading to improved financial performance.

We believe inclusion as a driving principle makes us a better Firm, one more able to deliver value to our clients, residents, and employees, and remain committed to embracing and developing best practices to cultivate an inclusive work environment where everyone can thrive by:

  • Establishing committees and working groups that offer forums for discussion and engagement.
  • Engaging with community organizations and stakeholders at the local, state, and federal levels to develop community-centered solutions and partnerships.
  • Maintaining and developing recruitment, retention, and promotion practices that expand our workforce to reflect the communities in which we operate.
  • Maintaining and developing workforce policies that reflect awareness, inclusivity, respect, equitable opportunity, and a fulfilling work environment for all employees.
  • Maintaining a workplace environment that creates opportunities for all employees to feel valued and appreciated and have equal opportunities for development and success.
  • Developing and promoting an inclusive network of partners, consultants, suppliers, vendors, and third-party professionals to support our success and growth.
  • Benchmarking, disclosing, reviewing, and improving on our inclusivity strategies year over year.
  • Educating ourselves regularly and engaging around any material inclusivity topic that impacts our communities, our business, and/or our stakeholders.
  • Embracing a leadership role in promoting inclusive culture within our relevant industries.

June 2022

Pretium’s State of ESG Report

Read here to learn more.