BlueMountain Closes $1.4B Credit Fund

Oct 10 2012 | 12:21pm ET

BlueMountain Capital Management has closed a longer-dated credit fund (its largest) with over $1.4 billion in capital commitments.

Credit Opportunities I will invest opportunistically to capture the large premium available in more complex and less liquid credit instruments.The fund will focus on corporate structured credit such as CLOs and synthetic collateralized debt obligations, asset-backed financing transactions and securities and off-the-run single company corporate credit.

BlueMountain says the new fund lets investors take advantage of opportunities arising in less liquid credit instruments that are being driven by regulatory changes, complexity fatigue and the retreat of bank capital from secured, asset-backed and structured lending markets.

“We are pleased with the reception this fund has had among institutional investors and family offices,” said Stephen Siderow, president and co-founder of BlueMountain. “A combination of political and market forces, including the secular retreat of capital from traditional lenders, has created opportunities for very attractive risk-adjusted returns for investors who have the ability and confidence to commit capital with us for five years.  Our proven expertise, track record, scale of operations and industry-leading infrastructure allow us to capitalize on these opportunities.”

The closing of the fund brings BlueMountain's assets under management to over $11 billion. The firm, founded by JPMorgan vet Andrew Feldstein in 2003, has a 140-person team with offices in New York and London.

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