GSC's Eckert Returns With New Firm

May 30 2013 | 12:29pm ET

Three years after his first hedge fund collapsed—and two after a frightening brush with death—GSC Capital founder Fred Eckert is back.

Eckert has launched a new firm, Phoenix Star Capital. Phoenix Star has already raised $100 million, and plans to launch a collateralized debt obligation and distressed debt funds, as well as providing consultancy services. And Eckert is seeking more, telling Reuters that in spite of GSC's implosion, "I'm not afraid of being able to raise substantial amounts," and two of his possible seeders are "billionaire names you'd know."

And even though Phoenix Star is just getting off the ground—rising from the ashes, as Eckert would no doubt have it—Eckert already has big plans for the firm, including a London office within two years.

Phoenix Star hopes to profit buying debt securities backed by loans banks are offloading to improve their capital ratios. "There are good investment opportunities in bankruptcies, because the British bankruptcy code has been modified, and there are good opportunities in mezzanine lending."

GSC went under in 2010 after hemorrhaging money during the credit crisis, eventually selling its assets to Black Diamond Capital Management. Just a year later, Eckert had a bad reaction to mixing alcohol and prescription drugs, and wound up in a coma for two months.

"It's a miracle," he said. "I should be dead."

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…