Tuckerbrook Alternative Investments recently had the first close of its global distressed fund-of-funds, with just south of $50 million. Most of these assets came from foundations and endowments, with a couple of family offices, said an official close to the firm. The fund launched in June. The firm intends to roll out global mezzanine and credit strategies in a year or so. In addition, Tuckerbrook is hiring a director of manager research to work in the distressed arena and hoped to have contracts signed before Labor Day.
The distressed fund-of-funds invests with 15 to 20 underlying funds and has exposure to distressed assets in the private equity space, debt, turnarounds, mezzanine finance, hard assets such as real estate and niche distressed strategies such as consumer-oriented plays. Up to 40% of the investments are international. It also has a 10% allocation to co-investments.
Sumanta Banerjee, who joined in April from the Commonfund Group, is managing the distressed strategy. The non-profits that have invested so far were clients of his at Commonfund, but the strategy is also being marketed to pension plans and high-net-worth investors. Banerjee launched and managed Commonfund's first distressed fund-of-funds between 2001 and 2005, and he launched a second fund in June 2003.