Investcorp Seeds Credit Hedge Fund With $50M

Oct 31 2007 | 1:59pm ET

A trio of ex-WR Huff Asset Management executives have formed their own a distressed and credit-based hedge fund with backing from Investcorp. Florham Park, N.J.-based Washington Corner Capital Management has been seeded with $50 million and is the sixth hedge fund Investcorp has added to its emerging manager platform.

Deepak Gurnani, Investcorp’s co-head of asset management, said the deal fulfilled a need for a credit-related strategy on the firm’s emerging manager platform, which sports other hedge fund strategies including fixed-income relative value and convertible arbitrage.

“We felt that the timing was right because there were signs that opportunities could open up in this space for the next 12 to 18 months,” he said.

Washington Corner is headed by Ed Banks, who spent 18 years with WR Huff where he held a variety of titles including senior portfolio manager of WR Huff’s high yield accounts and chief investment officer of the Huff Alternative Fund. He is joined by Matt Swope and Michael Fisher.

Investcorp structures its seed deals to include revenue sharing, with the majority of the revenue going to the managers.

Gurnani said the firm is looking closely at the event driven space and currently talking to two or three more emerging managers.

Investcorp was founded in 1982 and currently manages over $13 billion in hedge funds, private equity, real estate and Gulf growth capital.


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