In the last several weeks, the former Ceres Capital has come a long way in raising the funds needed to launch its already-rated structured investment vehicle (SIV), sources said. The company partnered with CDO powerhouse Stanfield Investment Partners in December, to form Stanfield Global Strategies. Just last week, XL Capital Assurance (XLCA) announced that it had taken an equity stake in both Stanfield entities.
While contacts at Stanfield declined to comment on the pending launch of the SIV, sources following the developments say this is just the infusion required to get the vehicle up and running.
Last summer, a source close to Ceres told ASR that the SIV would launch initially in the $1 billion-range, though that number could have changed, given the other developments. At the time, Ceres had begun winding down its securities arbitrage CP conduit, called Granite Funding, in favor of the SIV structure. Bankers Trust had an administrative role in the Granite Funding conduit.
Though several U.S. SIVs have been delayed, including a vehicle from Societe Generale that was slated for last fall, just this month, the first non-U.K. domiciled SIV, which is being managed in part by Gen Re Securities, was launched with a $20 billion capacity. The conduit, called Rothgar Capital Corp., is being run by Bermuda-based Rothgar Capital Management (owned partially by Gen Re). Additionally, Dublin-based West End Capital is acting as the investment advisor.
