Sub-Prime Forces Solent Fund Shut Down

Aug 20 2007 | 12:53pm ET

London hedge fund manager Solent Capital Partners has been forced to shutter a year-old asset-backed vehicle due to the credit crisis.

Solent will wind down its US$1.5 billion Mainsail II fund after being denied short-term financing through the sale of commercial paper, MarketWatch reports. The fund, which is drawing on emergency bank loans, may be forced to sell assets at a deep discount, Solent said in a statement today. Mainsail II had debts of roughly US$1.3 billion at the end of, according to Moody’s Investor Service.

“Current market volatility and lack of market liquidity with respect to the sub-prime lending markets have caused adverse conditions with respect to the liquidity and market exposures of the company’s underlying portfolio of investments,” the firm, which manages some US$8.8 billion, said.

Mainsail II invested in both residential and commercial mortgage-backed securities, as well as collateralized debt obligations.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…