U.K. Firm Launches Credit FoHFs

Jun 6 2008 | 2:58pm ET

U.K.-based Absolute Return Partners this month launched a credit fund of hedge funds to take advantage of the current dislocation in large parts of the credit market.

The ARP Credit Opportunities Fund is a multi-manager offering investing in credit funds across the spectrum. Loan funds and opportunistic credit funds will initially dominate the asset allocation of the fund while distressed funds will become more prominent in the portfolio later on, according to the firm.

That said, the portfolio will have a distressed securities component from the outset, as the financial services industry in general, and asset backed securities in particular, currently offer attractive opportunities for distressed securities investors.

Niels Jensen, a senior partner at Absolute Return Partners, said the firm’s seed investors “encouraged” it to create a concentrated portfolio of high conviction, high quality credit funds so the fund will remain a concentrated multi-manager fund with only eight to 10 underlying funds.

And because of its high conviction, the firm has decided to only charge investors a performance fee.

 


In Depth

The Benefits Of Private Debt Investing

May 7 2015 | 10:43am ET

Jeffrey Haas is chief operating officer of Old Hill Partners Inc., an SEC-registered...

Lifestyle

Yale Receives $150 Million Gift from Blackstone’s Schwarzman

May 12 2015 | 12:10am ET

Yale University announced it has received a $150 million gift from Blackstone Group...

Guest Contributor

How To Generate 6% Yield In A Volatile World

May 22 2015 | 6:41am ET

Private credit comes in many different flavors, all with the common themes of over...

 

Editor's Note