Launches & Closures

Cairn targets credit stress with subordinated financials fund


London-based credit specialist Cairn Capital is rolling out a fund focusing on subordinated financial debt instruments. The Subordinated Financials Fund is due to launch on 3 October and will aim for double-digit annualised returns, investing primarily in legacy instruments within Europe.

The fund has around €45 million in committed seed capital from two pension funds that are already Cairn clients: UK corporate scheme Stanhope Pension Trust, and US public pension fund San Bernadino County Employees’ Retirement Association.

Cairn believes the sovereign and regulatory stresses impacting the credit markets are providing an opportunity to generate excellent risk-adjusted returns for