Northlight Financial has begun fundraising for a “pure play” corporate credit hedge fund, which it hopes to launch by the end of the year.
The New York-based firm hopes to raise $100 million—$50 million apiece for its onshore and offshore versions—for the new fund, which will invest in first lien, senior secured syndicated loans in the U.S. and Canada, HedgeFund.net reports. The credit vehicle is expected to launch in the fourth quarter.
Managing the new fund is Ajay Nanda, who joined Northlight last month after six years at Avenue Capital Group. At Avenue, Nanda was an analyst within the firm's $3.5 billion collateralized loan obligation business.
The new fund will employ no more than 2.7-times leverage, Nanda said, with management investing an “appropriate amount” of their own money, Chris Jahmarkt, the Northlight partner charged with business development for the new fund, told HFN.
Rothstein Kass will serve as auditor of the new fund, Anchin Block Anchin as administrator and Bank of New York Mellon as custodian. The fund features a $1 million minimum investment requirement and charges 1% for management and 15% for performance.