Gramercy Funds Management Raises Nearly $1B for Third EM Distressed Credit Fund

Nov 18 2016 | 9:00pm ET

Emerging markets specialist Gramercy Funds Management has raised nearly $1 billion in commitments for its third distressed and opportunistic emerging markets credit strategy.

The new fund, named Gramercy Distressed Opportunity Fund III, closed in early October, the company said in a statement. The total is triple the tally of Gramercy’s second EM distressed fund, which raised $305 million in 2013. 

Fund III has a five-year investment time-horizon and will invest opportunistically in dislocated and defaulted sovereign, quasi-sovereign and corporate credits, Gramercy said. It will also target stressed credit opportunities that require flexible capital solutions such as direct loans, and will actively short bonds and hedge long positions. 

“Gramercy’s strength lies in our deep expertise in leading financial restructurings in emerging markets and our successful track record of negotiating fair, profitable outcomes for investors in those regions,” said Robert Koenigsberger, CIO and founding partner. “We have utilized our abilities to drive strong returns historically, in a manner that has proven to be uncorrelated and tail risk aware, and look forward to successfully executing on our most recent distressed opportunity strategy.” 

To date, the fund has called 50% of Fund III’s capital and made 15 investments across multiple subsectors in Latin America and CEEMEA, Gramercy said. 

Founded in 1998, Greenwich, CT-based Gramercy seeks to provide investors with superior risk-adjusted returns through a comprehensive approach to emerging markets, supported by a transparent and robust institutional platform. The company manages approximately $6 billion in alternative and long-only strategies across all emerging markets asset classes including USD debt, local currency debt, high yield corporate debt, distressed debt, equity, private equity and special situations.

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