Launches & Closures Hedge Funds

Chatham morphs leveraged loan fund to special sits

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“We saw a great opportunity set in the liquid part of the stressed and distressed markets.”

Chatham Asset Management, a $1 billion credit hedge fund firm, is rolling investors from its leveraged loan fund into a new special situations vehicle, citing better opportunities in liquid credits. The Chatham Asset Partners Special Situations Fund is expected to begin trading in March with $160 million from existing investors in the firm’s leveraged loan strategy and the firm has commitments for an additional $40 million set to come in on Feb. 1. Portfolio managers Kevin O’Malley and Evan Ratner, who managed the leverage loan fund, will co-manage the new strategy.

The Chatham Asset Leveraged Loan Fund, which launched