Stabilis Fund IV Launch
Stabilis Capital Management, the New York fund manager backed by the family office of former hedge fund manager Timothy Barakett, has closed its fourth distressed debt fund oversubscribed at $540 million.
The fund sponsor set a $500 million target for the vehicle, it said in an e-mailed statement in response to questions regarding the fundraising. The fund had a hard cap of $600 million, according to regulatory filings.
Amid strong investor demand for distressed opportunities, the fund eclipsed the sponsor's previous vehicle, its third, which secured $350 million in commitments.
TRB Advisors, Barakett's family office, is the fund's biggest investor and Barakett serves as Stabilis's non-executive chairman. Stabilis spokesman Andrew Moesel at Weber Shandwick declined to say how much TRB had committed to the vehicle.
Barakett founded and built hedge fund manager Atticus Capital LLC before returning investors' money and winding down the firm in 2009. He established TRB in 2010.
Stabilis had performed impressively and has an exciting investment pipeline, Barakett said in a separate e-mail response.
Stabilis, based in New York, had tapped 36 investors at the time of its first close, according to a January regulatory filing. These included a $50 million investment from the University of Michigan’s endowment, according to university documents.
Investors included a range of public and private pensions, family offices, financial institutions and endowments, the firm said.
University of Michigan interim executive vice president and chief financial officer Douglas Strong did not respond to an e-mailed request for comment. Stabilis Capital is run by co-founder and Chief Investment Officer Salman Khan, who spent six years as the head of Silver Point Capital LP's commercial and industrial loans business.
Stabilis will invest in debt secured by hard assets including real estate, and other opportunistic deals. The fund will focus on the U.S. but may opportunistically invest in Northern Europe, according to documents from the University of Michigan.
Stabilis raised a $350 million fund, its third, in 2013 following a $180.6 million fund the year before, according to data compiled by Bloomberg.
Stabilis Starts Third Fund with $350 Million Stabilis Capital Management LP, the New York-based firm that invests in distressed commercial real estate loans, started its third fund with $350 million in commitments last month, according to a person familiar with the matter. Stabilis Fund III, run by Managing Partner Salman Khan, invests in the distressed commercial whole-loan market and in non- performing commercial loans in the $1 million to $25 million range, and has closed to new commitments, said the person. About 30 percent of the portfolio can be in performing loans, real estate and European investments, the person said. The firm’s Stabilis Fund I and II are similar strategies also run by Khan. The first closed to new investments in October 2011 with about $50 million in commitments and the second closed in June with around $200 million, the person said. The first two funds are currently liquidating existing investments, which typically have an 18-month investment period. Fund I has resolved more than two-thirds of the capital invested and Fund II about 14 percent of the money. Khan has managed Stabilis since September 2010. He was formerly head of the commercial and industrial loans group at Silver Point Capital LP. Konstantin Shishkin, a spokesman for Stabilis, declined to comment on the start of the fund.
TRB Advisors LP, the family office founded by Tim Barakett, seeded Stabilis Capital Management LP, the $200 million New York-based distressed commercial real estate loans hedge fund, according to a person familiar with the matter. The fund started with $150 million in commitments, including TRB’s seed investment. The firm started Stabilis Fund II, which makes investments in the distressed commercial whole-loan market, on Oct. 28, said the person. The fund invests in smaller nonperforming commercial loans and is open to outside investors. The firm’s Stabilis Fund I is a similar strategy that has more than $50 million in commitments and closed in Sept. 2010. Salman Khan, managing principal at Stabilis, manages the funds. He was formerly head of the commercial and industrial loans group at Silver Point Capital LP for six years and a vice president at Goldman Sachs Group Inc. for 12 years.