Magnetar Capital, the startup launched by a former principal at Citadel Investment Group, will engage in direct lending and distressed debt investing when it launches its fund this fall. Run by Alec Litkowski from Citadel and Ross Laser, formerly president of Glenwood Capital Management, the Evanston, Ill. fund expects to launch with $2 billion.
Other strategies include long/short plays in technology, healthcare, small-cap and energy sectors. It will also pursue event-driven strategies including risk arbitrage and equity restructuring. The fund will also make investments in PIPEs and equity and debt private placements, according to a marketing document. The firm is pitching an alternative approach to investing that seeks cross-over investment opportunities that require collaboration among multiple disciplines.
The firm also has offices in New York and San Francisco and intends to have a staff of 40, including 20 investment professionals. In the documents, the firm explains the choice of its name. Magnetar is considered the most magnetic object in the universe and produces bursts of energy resulting in the brightest objects observed in the universe. Calls to Magnetar officials were not returned.