Friday, 3 July 2015
Last updated 11 hours ago
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.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…