Callidus Capital Management has launched its first hedge fund, a $100 million capital structure arbitrage fund called the Saepes Capital Investors. The $1 billion New York-based private equity, structured bond and loan fund specialist, set up the fund to take 30-50 positions, primarily in non-investment-grade and senior secured floating rate bank debt. Those positions are hedged with short positions in fixed-rate junior instruments of the same or highly correlated issuers.
The fund carries a 2% management fee and a 20% performance fee. The minimum investment is $1 million. It is open to high-net-worth individuals, pensions, foundations, endowments and funds of funds. Richard Ivers, co-founder and ceo, did not return calls.