Tuesday, 2 September 2014
Last updated 30 min ago
Nov 25 2013 | 1:51pm ET
Former star FrontPoint Partners manager Stephen Czech has won $1.5 billion for his second direct-lending hedge fund.
Greenwich, Connecticut-based Czech Asset Management said that it had closed its SJC II fund, doubling its assets under management to $3 billion. Czech said it had sought only $1 billion for the fund. Investors sought to put $1.8 billion, but it was hard-capped at $1.5 billion—the same size as the existing SJC Direct Lending Fund, which Czech raised while still at FrontPoint.
SJC I has produced annualized returns of 11.5% since its debut in 2010.
"U.S. middle-market businesses continue to have relatively few quality financing sources as numerous middle market direct lenders have either exited the direct lending business, gone 'down-market' towards smaller borrowers or are gravitating towards larger borrowers for both strategic and regulatory reasons," Czech said. "We plan to continue to fill that void for creditworthy businesses in need of secured floating rate debt that is required to expand their businesses and increase their hiring."
In addition to its own $3 billion, CAM has $1.2 billion in co-investment capacity.
Czech's second fund is backed by the likes of Michigan and South Carolina's public pension funds.
Czech spun his direct-lending fund off from the failing FrontPoint in 2011, just months before the one-time hedge fund giant went out of business in the wake of an insider-trading scandal.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
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