On Wall Street, disaster and opportunity are often one and the same. So as the U.S. subprime mortgage crisis drags down the credit market, the distressed-debt space is starting to get a little crowded.

New York-based alternative asset manager Eos Partners is joining the scrum, planning a distressed debt hedge fund for launch this fall. The firm hopes to raise between $750 million and $1 billion and will focus on European middle-market acquisitions, Financial News reports. Matt Meehan will manage the fund.

Eos manages some $2.5 billion in hedge and private equity funds.