Golden Tree Asset Management managed to close a $700 million high-yield collateralized debt obligation comprised of loans and bonds despite the moribund high yield market and the fact the fund was priced and sized on Sept. 10, one day prior to the World Trade Center attacks. The closing of the fund was on Sept. 28.
Deutsche Bank was the sole placement agent, having worked with the hedge fund before. The bank raised $112 million in equity and $588 in debt. Michael Herzig, the banker on the deal, didn't return calls seeking comment.
The mandate for the GoldenTree High Yield Opportunity II fund is a diversified portfolio consisting of bank debt, high yield and special situations. The new fund brings total assets under management to $2 billion, said Leon Wagner, chairman of Golden Tree.