NEW YORK–(COMMERCIAL THREAD)–400 Capital Management, an alternative credit asset manager specializing in structured credit with more than $5.7 billion in capital under management, announced the permanent closure of its Asset Based Term Fund III (“ABTF III”). The fund, which launched in July 2021, has raised $580 million in committed capital from institutional investors attracted by the firm’s proven track record of maximizing value through innovative asset-based private debt strategies, particularly as broad market volatility it has overturned the more traditional strategies.
“The success and favorable track record of previous ABTF funds demonstrated the attributes of opportunity and diversification that investors are recognizing,” said Chris Hentemann, Managing Partner and Chief Investment Officer. “Regulatory capital constraints on financial institutions, combined with the evolution of the business cycle, continue to support opportunities for institutional investors interested in long-term committed capital investment in illiquid credit opportunities globally.”
The closure of ABTF III follows the company’s successful 2019 launch of ABTF II, which closed with over $430 million in August 2020. Previously, ABTF I launched in 2017, which raised over $200 million and is fully invested and returning capital to investors. ABTF III invests in illiquid credit opportunities in the public and private credit markets in the United States and Europe, primarily in the residential, commercial real estate, consumer finance and specialty finance markets. The strategy aims to take advantage of the market dislocation in structured products which has resulted in significant liquidity premiums across a wide variety of asset classes, risk transfer solutions from US and European banks and GSEs, special finance opportunities where regulated institutions do not participate and deleveraging of European banks.
400 Capital Management has offered a diversified approach to structured credit investing since its inception in 2008. The firm manages structured credit businesses through blended funds, separately managed accounts and private credit portfolios.
About 400 Capital Management:
400 Capital Management is an alternative wealth manager led by a management team with over thirty years of experience investing and trading in the credit markets. The firm operates a global platform that accesses differentiated credit investment opportunities through total and absolute return strategies in multi-investor funds and customized portfolio solutions. The team consists of 66 professionals in offices in New York and London, who collectively manage $5.7 billion for global institutional investors.