Wiltshire Capital and PCE have launched a new credit hedge fund, backed by a major Australian bank.
The Wiltshire Credit Opportunities Fund is targeting 15% annual returns. The fund is managed by Wiltshire founder John Sullivan, with PCE providing infrastructure, risk management, compliance, fundraising and regulatory support. PCE—which is registered with both U.S. and British regulators—will also serve as the appointed manager of the fund.
The fund will invest in mispriced and distressed high-yield European corporate debt.
"Debt markets have grown substantially in the last ten to 15 years and offer a wide selection of investment opportunities across the capital structure and in a broad range of industries and geographies," Sullivan told HedgeWeek. "At the same time the current economic climate and continuing fallout from the global financial crisis has created some compelling opportunities in these markets, making it an ideal time to launch a fund like Wiltshire Credit Opportunities Fund that specializes in these assets."
NabInvest, National Australia Bank's asset management arm, has seeded the new fund.
Merrill Lynch International is the new fund's prime broker and Quintillion is its administrator.