Gramercy Rolls Out Second Distressed Debt Fund

Nov 27 2012 | 2:14pm ET

Gramercy Funds Management has launched a $200 million emerging-markets distressed credit hedge fund.

The Greenwich, Conn.-based firm said the fund, the successor to its Distressed Opportunity Fund, will invest in all manner of stressed and distressed debt, as well as performing and defaulted debt, Bloomberg News reports. The new vehicle, which will invest in both corporate and sovereign debt—Gramercy is among the investors in Argentina's restructured debt—aims to profit in particular from the nearly $2 billion in emerging market debt coming due over the next four years.

The new fund debuted in June and has garnered $200 million in commitments. It will remain open to new investments through next June; Gramercy did not specify a fundraising target or capacity.

"High-yield issuers in emerging markets will experience severe liquidity challenges over the next several years as the capital markets continue to eschew riskier corporate credit and banks in the developed markets continue to reduce their lending appetite," chief investment officer Robert Koenigsberger wrote. "Investors who want to profit from the problems in Europe should look at those risk assets that have re-priced but have nothing to do with Europe."

The new fund, which is up 11% since its launch, is managed by Robert Rauch, who also manages Gramercy's first Distressed Opportunity Fund, launched three years ago. That fund has annualized returns of 14% and is currently returning capital to investors.


In Depth

FINtech Focus: Fundbase Aims To Revolutionize Access To Hedge Funds

Jan 23 2015 | 11:03am ET

Global investment in financial technology—also known as fintech—is booming....

Lifestyle

Ex-Hedge Fund Billionaire Won’t Run For Senate

Jan 23 2015 | 5:48am ET

Ex-hedge fund manager Tom Steyer will not run for Senate after Sen. Barbara Boxer...

Guest Contributor

From Switzerland With Love: Some Hard Truths About Central Banks And Risk

Jan 23 2015 | 7:54am ET

In the wake of the Swiss National Bank uncoupling the country’s currency from...

 

Editor's Note