Plainfield Asset Management, the nascent firm started by distressed maven Max Holmes, has set out its special situations investment strategy. Holmes, who was previously a managing director of D.E. Shaw & Co. and ran its distressed securities group, resigned in February to set up Plainfield (LMW, 3/14). He is joined by Rob Sherman who is a partner and head trader and was previously on Deutsche Bank's distressed trading desk.
Plainfield will invest across the capital structure, including bank debt, bonds, convertibles, preferred, common stock, trade claims and credit default swaps. The strategy may engage in rescue financing as well as sponsor company buyouts, according to a Goldman Sachs capital introductions document. The fund also could be a player in bankruptcy court sales and may purchase complete ownership stakes in companies.
The strategy will employ a market neutral approach. "[It] will employ leverage and have a significant level of equity shorts, corporate bond shorts, credit default swaps and index swaps," the document says.
The firm is looking to make more hires when the fund launches. One trader has already been identified, and three additional senior analysts (one already identified) will be brought on board, according to the document. The firm will also tap a financial controller. Georges Holzberger, head of marketing and investor relations, did not return calls.
