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| Posted: 30 June 2020 at 09:15 | IP Logged
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PIMCO raises $5.5 billion for private credit funds
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Credit funds, especially those with exposure to
structured credit like mortgage-backed securities, were
flattened in a disastrous March, and many were forced to
sell at a loss to meet margin calls from banks.PIMCO's
nearly $4 billion Tactical Opportunities fund lost
roughly 15% in March, but was able to avoid forced
selling, sources tell Business Insider, and even added to
positions in the month.The fund has raised $250 million
¡ª one of several private credit funds that PIMCO has
raised money for.Overall, PIMCO has raised around $5.5
billion across several private credit funds.Visit
Business Insider's homepage for more stories.To get more
news about
W
ikiFX, you can visit wikifx news official website.
¡¡¡¡It's not often that a fund is able to raise
additional money after losing more than a tenth of its
assets in a single month.PIMCO's nearly $4 billion
Tactical Opportunities hedge fund was slammed in March
thanks to the exposure to structured credit products like
mortgage-backed securities, sources tell Business
Insider, but has still raised $250 million for the year
¡ª one of several private credit funds the asset
management giant has been calling investors about. The
fund, which was down roughly 15% in March but up 2.17% in
April, has communicated with investors that the portfolio
management team believes this the best buying opportunity
in a decade, sources say. The fund avoided some of the
forced selling that other managers dealt with in March,
due to margin calls from lenders, and ended up adding
more positions than selling for the month. The fund is
down a little more than 12% for the year through
April.The average credit fund lost 6.4% in March,
according to PivotalPath, a consultant database for the
industry that has more than 2,000 managers and $2.3
trillion in assets on its platform, with certain segments
doing worse than others. Structured credit and mortgage-
related funds fell by more than 12% on average, and
distressed fell by 11%, found the database.
¡¡¡¡The Newport Beach, Calif.-based manager declined to
comment. Despite the trouble many credit managers have
run into, industry observers expect a surge in interest
in specialized credit shops that have proven to be
winners in distressed situations. PIMCO has tapped into
that demand, with sources telling Business Insider that
the firm has raised $5.5 billion in private credit
strategies since the beginning of the year.The funds
include the aforementioned Tactical Opportunities Fund as
well as a $3 billion distressed fund, known as Distressed
Credit Opportunities Fund III, or Disco III, which
Bloomberg reported on. Notes from a board meeting of
Ventura Employees' Retirement Association from January
show the approval of a $50 million investment in PIMCO's
private fund Credit Opportunity Fund III, and sources say
the firm's Flexible Income Credit Fund, an interval fund,
has raised money as well. PIMCO's hedge funds are
overseen by CIO Dan Ivascyn, among others. The Tactical
Opportunities Fund is also managed by Josh Anderson and
Alfred Murata, while the Global Credit Opportunities
Fund, which lost more than 13% in 2019, is managed by Jon
Horne and Ivascyn.
¡¡¡¡PIMCO runs around $25 billion in alternative credit
and private credit strategies, but that total will
balloon to $100 billion the firm's deal to acquire
Allianz's real estate investing arm closes this year. The
firm has built out its private investing arm over recent
years, poaching Greg Hall from Blackstone in 2017 to run
its private strategies and Jamie Weinstein from KKR in
2019 to run its corporate special situations group.
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Topic: PIMCO raises $5.5 billion for private cre
