Posted by & filed under Hedge Fund Assets, Hedge Fund Investing.

By Susan Barreto, Editor of Alternatives Watch

Undeterred by global pandemic, market volatility and a shaky U.S. economic recovery, alternative investment managers moved ahead attracting new capital in macro, alternative credit and private equity opportunities.

In total 20 funds/strategies collected $19 billion in investment capital, according to fund closing and launch details reported by Alternatives Watch last month. 

Interest has remained brisk throughout 2020. In February, private equity managers raised $10.7 billion. And for the entire first quarter, we tracked more than $22 billion in alternative investment mandates mostly by U.S. public pension plans.

April was a huge month for fundraising, with $35 billion in fresh capital chasing new and intriguing opportunities in health care technology, as recorded by fund closings and fundraising activities covered by Alternatives Watch. The majority of activity took place in distressed as Howard Mark’s was reported to have raised $15 billion for the largest distressed debt fund to have ever been raised.

Dominating May’s fund activity are a number of the strategies seek to profit and or/help ease the economic pain of the COVID-19 crisis by providing social impact investments such as Morgan Stanley’s new impact investing platform or to provide liquidity and credit in the case of direct lending deals and collateralized loan obligations. 

The largest launch was at KKR completed a capital raise focused on investing in credit opportunities created by recent market volatility, with a total of $4 billion raised in its KKR Dislocation Opportunities Fund. Roughly $1.1 billion came from separately managed accounts committed to the same investment opportunities. The fund and these SMAs were raised in an eight-week period and will operate within KKR’s $67.6 billion credit business.

The fund held its final close on May 19 and included commitments from more than 20 new institutional investors to KKR and more than 40 new investors to KKR Credit. Officials said a major wealth management platform also contributed to the fundraising.

A full run-down of last month’s private market fund launches follows.

Manager NameFund NameCapital raised ($m)Strategy
KKRKKR Dislocation Opportunities Fund$4,000 private credit
Ares Management CorporationU.S. direct lending portfolio$2,700 private credit
Aquiline Capital PartnersAquiline Financial Services Fund IV$2,000 private equity
Apollo Global ManagementApollo Accord Fund III B$1,750 private credit
Maniyar Capital AdvisorsManiyar Capital Advisors UK Ltd$1,000 hedge fund
ImpactAssetsCOVID Response Fund$1,000 ESG
Modular Asset Management (Singapore) PteModular Asian Macro Fund$1,000 hedge fund
Energy Spectrum Capital Energy Spectrum Partners VIII $969 infrastructure
Cathay Capital Private Equity Midcap II $850 private equity
GoldenTree Loan ManagementGLM US CLO 7 $503 private credit
SLC ManagementTALF 2020 strategy$500 private credit
Slate Asset Management$500 private credit
Cowen Healthcare InvestmentsCowen Healthcare Investments III$493 private equity
ONEX Corporation OCP 2020-19 (CLO)$407 private credit
AGL Credit Management AGL Core CLO 4 Ltd. $400 private credit
BlackRockMagnetite XXVI (CLO)$400 private credit
OakTree Capital ManagementOAKCL 2020-1 (CLO)$386 private credit
Cohere CapitalCohere Capital Fund I LP$200 private equity
Morgan Stanley AIPAIP Private Markets Climate Solutions Fund$110 ESG
D.E. Shaw  D.E. Shaw Razor China Fund$0.14 hedge fund

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