Former Credit Suisse executives plan distressed fund
Credit Value Partners, a New York boutique spun out of Credit Suisse by former executives from the bank, is seeking up to $400m for a distressed debt fund, according to a filing with America’s fund regulator the Securities & Exchange Commission.
The hedge fund product, called Credit Value Partners Distressed Duration Fund, LP is based in Delaware as an onshore US fund.
The rules around private placement of funds mean prospective investors can approach CVP about the product, but not vice versa. As a result, CVP declined to comment at all on features of the strategy.
However, according to the SEC filing, the minimum investment in the product is $5m.
Credit Value Partners was formed within Credit Suisse in 2008, and became an independent firm in 2010.
Donald Pollard, its managing partner, was formerly head of that bank’s credit investments group with $17bn assets in distressed debt, leveraged loans and high yield bond portfolios.
The firm’s partners are Grant Pothast, Michael Geroux and Howard Sullivan. Pothast and Geroux are portfolio managers, while Sullivan is both chief operating officer and general counsel.
Their investment strategy focuses on high-yield stressed and distressed corporate debt, with the managers “targeting senior secured obligations that they believe are undervalued and in their view are likely to generate attractive total returns”.
Their focus is on companies with annual revenues of between $200m to $2bn.
The firm has previously registered a Cayman Islands-based partnership, Credit Value Partners Distressed Duration Fund LP.