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December 06, 2017  

Distressed-Debt Pros Offer Lockup Vehicle

Silverpeak Credit Partners is marketing a special-situations debt fund with a long-term lockup.

The firm, led by a team that previously managed “bad bank” assets for UBS, aims to raise $250 million for its planned Silverpeak Credit Opportunities Fund. The manager has received verbal commitments totaling about $50 million so far, on top of some $25 million that Silverpeak’s partners intend to invest. The plan is to begin deploying capital in the first half of next year.

The fund would invest in a variety of illiquid debt instruments including bonds, loans and trade receivables. A two-year investment period would be followed by a three-year “harvest” period, with a one-year extension option.

The marketing effort emphasizes the experience of chief investment officer Adam Hagfors and portfolio managers Vaibhav Kumar and Brian Rigert, who previously worked together at UBS. In the wake of the financial crisis, Hagfors and his 40-member team in the U.S. oversaw the disposition of some $40 billion of distressed debt.

In 2015, Hagfors, Kumar and Rigert joined Silverpeak, a New York firm focused on real estate and energy investments. Operating as Silverpeak Credit Partners, their initial focus was launching a series of funds that invest in the equity tranches of collateralized loan obligations. Those funds, combined with two separate accounts, had $157 million of gross assets under management as of June 30. The first fund in the series, Silverpeak CLO 1, has generated an 18% internal rate of return.

Hagfors joined UBS in 2009. He previously spent six years at Bear Stearns. ?