FINalternatives- Yet another hedge fund operator is diving into the burgeoning distressed-debt market looking for a piece of the action. Switzerland’s Union Bancaire Privée is looking to make some noise with the launch of a pair of funds of hedge funds in June focused on distressed hedge fund and private equity managers.
UBP’s DCO Distressed Fund, a broadly focused distressed fund, is looking to raise $300 million to invest in 20 to 25 hedge fund managers. The fund also has a 25% allocation to private equity for institutional investors with p.e. mandates.
“We think it is a good time to be looking at the strategy, but we’re certainly not believers in that defaults are going to increase within the next few months or so,” said Schoaib Khan, portfolio manager. “In fact, we see large bankruptcies and distressed coming to market further down the road later on this year and next year.”
