Brevan Howard To List Structured Credit Hedge Fund

Oct 14 2010 | 10:16am ET

Brevan Howard Asset Management is preparing to launch a structured credit hedge fund that will be listed on the London Stock Exchange.

The London-based firm, now Europe’s second-largest hedge fund following the Man Group’s acquisition of GLG Partners, plans to list the vehicle in December. Underwriters are expected to be appointed this week, the Financial Times reports.

Brevan has not set a target size for its third listed hedge fund vehicle. Money raised by the fund will be invested in Brevan’s existing credit fund, Catalyst, which has returned 4.2% this year after rising 34.8% last year, its first. Catalyst manages US$1 billion in mortgage-backed securities and other complex debt instruments.

The fund is headed by former Morgan Stanley structured credit chief David Warren.

“If there is money to be made anywhere in the market at the moment, it is in structured credit because it is still hated,” Brevan CEO Nagi Kawkabani told the FT. “There are still massive stresses and dislocations in the US markets. There are more than $100bn of structured credit securities in the hands of banks and investors that don’t want them any more, but there hasn’t been the capital to get them out.”


In Depth

Q&A: Decathlon Capital On Revenue-Based Alternative Lending

Oct 30 2017 | 3:49pm ET

The explosion in private credit activity since the end of the financial crisis is...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Saxby: Not All EBITDA Is Created Equal

Nov 30 2017 | 8:02pm ET

Record levels of dry powder are driving competition among private equity firms to...