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Varde raised $1.6B for second distressed opportunity fund of 2020

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Alternative investment firm Värde Partners is closing its second fund targeting distressed credit opportunities with $1.6 billion in commitments for assets potentially stressed or mispriced as a result of the economic fallout of the coronavirus outbreak.

According to a company release, The Värde Dislocation Fund will look for global investments that will benefit from “historic market locations and economic disruptions from the COVID-19 pandemic.”

The fund exceeded its $1 billion target in five months of fundraising despite the lack of in-person meetings, and attracted 55% of the commitments from new investors, according to Värde president June Fox.

Earlier in 2020, Värde also launched a $1 billion dislocation fund raised through an undisclosed bank, bringing the firm’s total distressed debt fund raising to $2.6 billion on the year.

“We believe the profound impact of Covid-19 has marked the start of a major, connected cycle,” said George Hicks, Värde’s co-founder and co-chief executive officer, in a statement.

“The unparalleled speed and disruption to society and markets has caused fundamental damage to the global economy. The range of potential outcomes remains incredibly wide, and we expect varying degrees of impact around the world,” said Ilfryn Carstairs, co-chief executive officer and chief investment officer, according to a company release.

Värde manages $14 billion for a global investor base in the U.S. Europe and Asia.

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Distressed Debt Alternative investments