Five Mile Capital Partners, a $1 billion firm started by Greenwich Capital Markets/Royal Bank of Scotland executives, will debut a credit hedge fund in September. The Five Mile Credit Opportunities Fund has a $300 million target and will invest in small-cap company bank loans, according to potential investors. A Five Mile spokesman declined to comment.
Neil Rothenberg, who joined the Stamford, Conn.-based firm early this year, will be the fund's portfolio manager. He previously managed funds at Ramius Capital Group and Xerion Capital Partners.
Tom Kendall, Gary Holloway, Chip Kruger and Steve Baum formed Five Mile in 2003. Kendall, Holloway and Kruger were principals at Greenwich Capital, the investment bank acquired by NatWest Group in 1996. RBS then acquired NatWest in 2000. Baum was the top executive of PaineWebber's institutional business, where he headed the firm's global fixed-income and capital markets departments.
The credit fund will carry a $1 million investment minimum, 1.5/20 fees and a two-year lockup. Bear Stearns is the prime broker.