Atlas closes debut distressed fund on $365m

After years of syndicating club deals, the Pegasus Capital spin-out decided to raise its first fund with external capital to take advantage of the expanding opportunities in distressed-for-control.

Greenwich, Connecticut-based Atlas Holdings has closed Atlas Capital Resources, its debut distressed investment fund, on $365 million, well above its target of $250 million.

Atlas was able to attract capital from traditional sources in the industry like public and private pensions, funds of funds and family offices. Fundraising was challenging, according to a spokesperson for the firm, but LPs were attracted to Atlas’ focus on making operational improvements. “That’s a formula lots of LPs were looking for,” the spokesperson told PEO.

Atlas was created in 2002 by Andrew Bursky and Timothy Fazio as an industrial holding company. Bursky and Fazio spun out of Pegasus Capital Advisors, a private investment firm.

Since inception, Atlas has invested its own capital and co-investment money from investors, but decided the time was right to raise external funds.

“[The firm] sensed the market was moving in the direction of [distressed for control], and they wanted to make sure they were well capitalised,” the spokesperson said.

The firm “has been an active acquirer of businesses” through bankruptcy proceedings, out-of-court restructurings and underperforming divisions from corporate sellers.

Atlas has made one investment so far from the fund, buying the utility and construction, food and agriculture and hardwood and industrial products divisions from North Pacific Group. 

Capstone Partners worked as placement agent for the fundraising.