Wednesday, 22 October 2014
Last updated 9 hours ago
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.
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