Monday, 8 February 2016
Last updated 2 days ago
Feb 14 2012 | 1:36pm ET
Alternative investments firm Pamplona Capital Management is set to launch a second European structured credit fund, and hopes to raise up to US$300 million for it.
Debt Partners II will invest in both investment-grade and sub-prime structured credit, with credit ratings of between double-A and double-B. The fund will focus on British mortgage-backed securities and European collateralized loan obligations, hoping to take advantage of European banks' plan to sell off more than US$1 trillion of assets over the next two years.
"We see great opportunities in structured credit which is an arena most banks don't want to be involved in anymore," fund manager Zoran Kozic told Bloomberg News.
Kozic said he hopes to earn annualized returns of between 15% and 20% buying structured credit at steep discounts and then restructuring the debt. Debt Partners II will have a four-year investment period, and will not charge an incentive fee if its returns fail to exceed 8%.
London-based Pamplona has $6.5 billion in assets under management.