Tuesday, 26 July 2016
Last updated 35 min ago
Dec 3 2007 | 1:30pm ET
U.K.-based Eden Rock Capital Management is looking to cash in on the hype surrounding asset-based lending hedge funds. The $3.2 billion fund of funds shop in October launched the Eden Rock Asset-Based Lending Fund, with $18 million in assets. The fund is currently invested in 20 underlying managers, mostly in the U.S.
Eden Rock is no stranger to ABL strategies, having allocated some $2.8 billion to asset-base lending strategies, according to managing director Edward Horner. It currently runs nine different funds of hedge funds with exposure to other strategies, including structured finance and credit.
“It’s a new portfolio but we know the funds in there very, very well, and this is what we feel represents the best opportunities with asset-based lending hedge funds,” said Horner. “Within the past few months, some of these strategies have been negatively impacted and has resulted in more opportunities for ABL hedge funds because they’re able to lend at attractive spreads. After what happened in the summer, ABL hedge funds are saying they’re seeing increased deal flow and funds that have been soft closed are taking in new money.”
Horner anticipates raising some $200 million for the vehicle by June. He said the offering is up an estimated 80 basis points in November.
The Eden Rock Asset-Based Lending Fund charges a 1% management fee and a 10% incentive fee with a $100,000 minimum investment requirement.
The firm is also looking to take advantage of distressed assets stemming from the fast-sinking U.S. real estate market with the launch of the Eden Rock Distressed Opportunities Fund sometime in the first quarter. Horner said the firm is currently talking to potential seed investors for the new offering.