Mead Park To Invest In Loans With Puerto Rican Bank

Oct 16 2012 | 10:57am ET

Jack DiMaio's New York-based Mead Park Holdings hedge fund is joining forces with the Puerto Rican bank Doral Financial to invest in loans.

Mead Park will take a 75.1% stake in the new venture, Redan Park Asset Management, reports Bloomberg. The fund will have $1.1 billion in assets, including collateralized loan obligations.

The deal will build on Mead Park's “strong capital resources, structuring expertise and investment opportunity sourcing capabilities,” said DiMaio, a former Credit Suisse Group trader, in a statement.

Doral, the third-largest bank in Puerto Rico, has posted losses for six straight years and according to Bloomberg has been under constraining orders with the Fed since at least 2006. A September 11 agreement with the New York Fed gave Doral 60 days to come up with “strategies to minimize credit losses and reduce the level of problem assets.”

Doral's CLO specialist, Keith Barnish will stay on as part of the Redan team.

DiMaio runs Mead Park with David Moffitt, a fellow Credit Suisse alumnus, and Chris Ricciardi, who previously specialized in collateralized debt obligations at Merrill Lynch.

DiMaio’s first hedge fund, DiMaio Ahmad Capital, also managed CLOs.


In Depth

Dillon Eustace: The Advantages of ICAVs

Feb 11 2016 | 7:51pm ET

As the growth of alternative investment vehicles continues, global asset managers...

Lifestyle

Citadel's Ken Griffin Donates $40M To New York's Museum of Modern Art

Dec 22 2015 | 9:23pm ET

Citadel founder Ken Griffin has donated $40 million to New York’s Museum of Modern...

Guest Contributor

Hedging Against Reputational Risk in the 21st Century

Feb 12 2016 | 7:18pm ET

For investors, the first step in researching a new fund or manager is to google...