CapitalFusion Alternative Investments is gearing up to launch an asset backed securities fund in the fourth quarter. According to the firm, the CapFusion Global ABS Opportunity Fund will take advantage of the current conditions in the capital markets as well as ongoing growth and development of global ABS opportunities. 

John Joshi, managing principal of CapFusion, said the fund will have enormous investment capacity given the size of the market. The fund, which is in the preliminary marketing stage, has an initial target size of about $200 million to $250 million.

CapFusion’s new offering is a capital appreciation vehicle that will invest in ABS and CDO assets affected by the illiquidity in the capital markets, as well as commercial real estate, whole-loans and structured assets in U.S. markets. The fund will also invest in opportunities in these asset classes in Europe and Asia as these markets develop.

CapitalFusion Alternative Investments is joint venture between CapitalFusion Partners and a large U.S. asset management company. The firm, which was founded last year by Joshi, Rich Gupta and Daniel Kim, has offices in Los Angeles and New Jersey, and is in the process of opening an office in Singapore.