Asset management group Neuberger Berman has raised $197.2 million for a new vehicle, NB Distressed Debt Investment Fund, which will list on the London Stock Exchange’s specialist fund market later this month. The fundraising beat the firm’s original target of $150 million, as reported in April on PEO.
“The fact that we were able to raise nearly $200 million at a time of notable volatility in the global capital markets underlines investor appreciation of the current market opportunity and the company’s investment strategy,” said Robin Monro-Davies, chairman of NB Distressed Debt Investment Fund, in a statement.
The fund will be invested in “stressed, distressed and special situation investments in credit-related products”, the firm said. The increased supply of distressed debt and rising default rates have created a “compelling investment opportunity” said the firm. “We believe that we are still in the early days of this opportunity,” said managing director Michael Holmberg in a statement.
NB hopes to deploy the capital quickly, investing one third of the money within the first three months and being fully invested within nine months. It will target between 40 and 50 holdings.
Oriel Securities is acting as sole financial adviser, with Oriel Securities and RBS Hoare Govett acting as joint global co-ordinators and bookrunners.