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New York (HedgeCo.Net) - Victory Park Capital, a Chicago-based hedge fund, has received a vote of confidence from FRM Capital Advisors in the form of a major investment.  Victory Park Capital plans on expanding their asset-based lending fund in hopes of taking advantage of the favorable market conditions associated with this kind of strategy.

“We are delighted to have the opportunity to partner with such an experienced team,” says FRM Chief Executive Clive Peggram.  “We believe it is a very good time in the credit cycle to pursue an asset-based lending strategy.”

Victory Park Capital Advisors was founded last year and provides asset-backed loans to companies who are in need of financing and can’t always turn to the bank.  Asset based lending is a popular strategy in today’s current market turmoil with the large amount of high rises and other developments being constructed.  High interest rates are usually tacked on the loans, while the building is put up as collateral.    

“We’re very pleased to form a relationship with Victory Park Capital,” says Blaine Tomlinson, FRM’s founder and group chairman.  “As an established and experienced team, they are in an excellent position to capitalize on the attractive financing opportunities available to those who have capital to deploy.”

FRM Capital Advisors is active in the hedge fund seeding industry, seeking out potential opportunity among new funds.  Hedge fund seeding is a great way for new funds to get the capital needed to get off the ground.  Companies who provide the financing will work out some sort of the deal with the fund, perhaps sharing in the profits once the fund starts posting returns.

“We are incredibly excited about our relationship with FRM Capital Advisors and we are gratified that it has concluded that our team and strategy warrant such a significant investment,” said Victory Park Managing Principle Richard Levy.

FRM is a global fund of hedge funds group with over $15 billion of assets under management.

Julie Scuderi
Senior Editor for HedgeCo.Net
Email: julie@hedgeco.net

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New York (HedgeCo.Net) - Soft-drink maker Cott Corp. has gotten a vote of confidence from hedge fund Crescendo Partners, along with a boost in share value.

Crescendo has raised its stake to 8.7% in the struggling company, and will meet with company executives to discuss performance and “potential changes in the composition of the management team and the board of directors.”

After years of lagging stock prices, shares of Cott rose almost 14% to $3.61 yesterday with the news.

Crescendo, along with other hedge funds and private equity groups, often seek seats on the board and positions in management in order to bring about strategic change and to garner higher returns.

Crescendo was recently involved in a bitter proxy battle with Charming Shoppes Inc. after wanting to place members of their team on the board of the plus size women’s clothing manufacturer. The two companies eventually reached a settlement, with Crescendo receiving two spots on the board.

In a recent filing with the SEC, Crescendo stated that they have “engaged in and intends to continue to engage in discussions with management and the board of directors of the issuer concerning the business, operations and future plans."

Cott, who’s best known for their RC Cola product, has recently lost some shelf space at Wal-Mart, their biggest client. Mario Pilozzi, the former CEO of Wal-Mart Canada Corp., has agreed to work as an executive should Crescendo attain their board seats. Cott is currently run by CEO David Gibbons.

Julie Scuderi
Senior Editor for HedgeCo.Net
Email: julie@hedgeco.net

HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!
Be sure to check out our sister sites. For more information, visit www.hedgeconetworks.com

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