Hoping to capitalize on the various structured finance growth opportunities beyond securitization, seven ABS senior executives have left BMO Capital Markets to launch Six Degrees Capital Management (SDCM).

The Chicago-based company, which launched Friday, will operate as both a CDO asset manager and a hedge fund, initially backed by $100 million in equity from an unidentified asset management company. Six Degrees hopes to raise an additional $400 million in equity this year, which it will use to invest in mezzanine and equity opportunities of all credit types. Initially, the company will look to allocate between 60% and 70% of its funds to mezzanine, debt and apportion the rest to equity, said Pete Walsh, managing partner at Six Degrees.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.