Parker Global Strategies, an asset management firm with $350 million in assets, will seek to raise $50-100 million from foundations and endowments and other institutions, for its new PGS Distressed Opportunities Fund, a fund-of-funds that offers distressed debt funds as well as hedge fund investments. Virginia Parker, managing member of the Stamford, Conn.-based firm, said the new fund will contain about six-to-10 funds.
"While it is true some of the funds will invest in senior secured distressed debt, others will invest in long/short equity, distressed equity, event-driven investments and multi-strategy investments," she said, adding that foundations and endowments, which represent 10% of the firm's assets, would be interested in the new fund-of-funds because of the risk monitoring and the daily reporting that the firm provides via a secured website. "Now is the optimal time to launch a distressed fund of hedge funds because if you look out over the next two-to-three years, distressed debt offers the most compelling reasons for investment and likelihood of attractive returns," said Parker. "Managers will really have the opportunity to cherry pick because there is an oversupply of companies that are distressed."