Tourmalet Advisors, a Connecticut-based hedge fund, is in the process of raising $500 million to invest in nonperforming mortgages, according to an offering circular provided to National Mortgage News.

Tourmalet has already invested $460 million in nonperforming loans (NPLs) through its Matawin Fund and has formed joint venture partnerships with other vulture funds including Kondaur Capital, Irvine, Calif.

Tourmalet was founded earlier this year by Michael Corasaniti, a former managing director of Pequot Capital.

During his career he also has worked in research at Keefe, Bruyette & Woods where he served as a vice president.

At press time, Tourmalet's investor relations department had not returned a telephone call about the capital raise. Hedge funds have been raising money and eyeing the NPL market for 18 months, but to date, few large sales have taken place.

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