New York-based hedge fund seeding firm SkyBridge Capital has invested $50 million in WyeTree Asset Management.
London-based WyeTree invests in distressed assets that derive their principal risk and return from residential mortgages or residential real estate and which are oversold due to market technical factors.
WyeTree is currently investing in U.S. subprime mortgage-backed securities and subprime mortgages, but it is expected to eventually invest in mortgages outside the U.S., as well as in securities backed by home loans rated higher than subprime. The vehicle may also invest in other distressed assets.
In addition to providing WyeTree with long-term strategic capital, SkyBridge Capital will seek to enhance its investment in WyeTree by providing business-building support.
SkyBridge Capital’s investment is being made from its SkyBridge Capital II Fund. In aggregate, SkyBridge Capital and its underlying managers currently have approximately $1.5 billion under management.
WyeTree was founded in 2007 by two securitization specialists: Michael Chacos, chief executive officer, and Judith Sciamma, portfolio manager.