Arlington, Va.-based EJF Distressed II has launched an eponymous hedge fund to invest in special situations and distressed opportunities in the global markets.

EJF Distressed Fund II targets investments in the private and public debt markets, including different tranches of structured and securitized debt and equity securities such as collateralized debt obligations, asset-backed securities and mortgage pool residual interests, according to fund documents.

The fund will also invest in mezzanine debt, high-yield bonds, and public and private corporate bonds. The $20 million offering made its debut in June and has returned 10% through September. It charges a 2% management fee and a 20% incentive fee, with a $500,000 minimum investment requirement.

EJF was co-founded by Emanuel Friedman, former co-CEO of Friedman Billings Ramsey Group, and Neal Wilson, former senior managing director for the alternative asset investment and private wealth management groups at FBR.