400 Capital Management, an alternative credit asset manager specializing in structured credit with over $5.7 billion of capital under management, closed its Asset-Based Term Fund III (ABTF III). The fund, launched in July 2021, drew $580 million of committed capital from institutional investors attracted to the firm’s demonstrated expertise in maximizing value through innovative asset-based private debt strategies, in particular as broad market volatility has upended more traditional strategies.
“The success and favorable track record of the previous ABTF funds have demonstrated the opportunity and diversification attributes that investors are recognizing,” Chris Hentemann, managing partner and chief investment officer at 400 Capital Management, said. “The regulatory capital constraints on financial institutions combined with the evolving economic cycle continue to support opportunities for institutional investors interested in long-term, committed capital investments in illiquid credit opportunities globally.”
The close of ABTF III follows the firm’s successful launch of ABTF II in 2019, which closed with more than $430 million in August 2020. Previously, ABTF I was launched in 2017, which raised more than $200 million and is fully invested and returning capital to investors. ABTF III invests in illiquid credit opportunities across public and private credit markets in the U.S. and Europe, primarily in the residential real estate, commercial real estate, consumer finance and specialty finance markets. The strategy aims to take advantage of the market dislocation in structured products that has produced significant liquidity premiums across a wide variety of asset classes, U.S. and European bank and GSE risk transfer solutions, specialty finance opportunities where regulated institutions do not participate and European bank deleveraging.
400 Capital Management has offered a diversified approach to structured credit investments since its inception in 2008. The firm manages structured credit assets across comingled funds, separately managed accounts and private credit portfolios.
