Phoenix Investment Partners, Ltd. is evolving again, teaming up with Arden Asset Management to develop a new hedge fund of funds product. Of interest to asset-backed players, however, is the new animal all but bound to emerge from a partnership between a leading hedge fund of funds manager and a high-performing CDO player like Phoenix (See ASR 6/18/01).
Collateralized debt obligations of equity-related alternative investments seem to be on the priority list of several CDO managers these days. The private equity fund-backed Prime Edge Capital PLC CDO, managed by Capital Dynamics, recently received the first-ever stand-alone credit rating for a private equity vehicle from Standard & Poor's (see ASR 6/11 p. 10). It is likely that several other managers are currently eyeing the structure for their own portfolios.