Aladdin Capital Management, a Stamford, Conn.-based firm managing USD1.5 billion in high-yield loans, will launch an open-ended credit fund today with USD50 million of seed capital. The fund will use a variety of derivatives including credit-default swaps, credit options and swaptions (DW, 8/2).
"We certainly have enough capital looking at us now that we could get up to half-a-billion dollars in 12 months," said Jason Morris, one of the two fund managers. Institutions and fund of funds have shown great interest domestically, throughout Europe and in Japan, he said. "It's a pretty good cross section of alternative investors."
Yi Zhao, who previously worked at BNP Paribas on the derivatives trading desk will co-manage the fund with Morris and George Marshman will serve as its cio. The firm will consider closing the fund once it has amassed USD1 billion, Morris said.
