Stillwater, Matrix Debut Domestic ABL Fund Of Hedge Funds

Nov 15 2007 | 10:40am ET

U.K.-based Matrix Group and Stillwater Capital in New York recently launched an onshore version of their new Stillwater Matrix Fund, a fund of hedge funds that will invest in about 50 underlying asset-backed lending strategies.

The offshore fund launched in August and has already raised $60 million in partner capital. The domestic fund debuted Nov. 1 and the firms aim to raise a total of $300 million between both funds by early 2008.

Inflows into the new funds of funds have been averaging about $10 million a month, according to Jonathan Kanterman, a Stillwater managing director. "I'd expect we'll get to $300 million pretty quickly," he said.

The funds of funds leverage Stillwater's expertise in asset-backed lending and so far have taken stakes in about three dozen ABL hedge fund managers.

Stillwater manages two other funds of hedge funds, including the Stillwater New Finance Fund, a fund of asset-backed hedge funds, as well as the $425 million Stillwater Asset-backed Fund, a fund of collateralized loans. The funds charge an annual 1% management fee with a 20% incentive fee.

Matrix was founded in 1987 and currently has more than £2 billion of assets under management including hedge funds, funds of hedge funds and private equity funds.

Stillwater, founded in January 1997, now has about $800 million under management. It recently re-opened the Stillwater Asset-backed Fund to new investors, and plans a soft-close at $600 million, Kanterman said.

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