Varde raises nearly $3bn for dislocation strategies

The final close of The Varde Dislocation Fund exceeded expectations, bringing the total capital targeting dislocation opportunities at Varde Partners to $2.6 billion, the firm announced today. The Varde Dislocation Fund raised more than $1.6 billion of commitments and exceeded its $1 billion target in five short months of fundraising during a global pandemic. The fund invests in opportunities presented by the historic market dislocations and economic disruption resulting from the COVID-19 pandemic. The global mandate of the Varde fund is to pursue a broad universe of mispriced, stressed and distressed credit. “We believe the profound impact of Covid-19 has marked the start of a major, connected cycle,” said George Hicks, co-founder and co-chief executive officer of the $14 billion firm. “Having established a deep expertise in credit over the past 27 years, we bring to bear our experience investing through many credit cycles to guide us as the crisis unfolds.” Earlier in 2020, Varde launched another $1 billion dislocation fund that was raised through a private banking platform. This brings the total capital Varde has raised specifically for dislocation assets to the $2.6 billion and all of the additional capital raised follows on the close of Varde’s thirteenth flagship fund last December. “The unparalleled speed and disruption to society and markets has caused fundamental damage to the global economy. The range of potential outcomes remains incredibly wide, and we expect varying degrees of impact around the world,” said Varde Co-Chief Executive Officer and Chief Investment Officer Ilfryn Carstairs. “Our platform is well-suited to the opportunity in front of us, with the ability to pivot to markets and geographies where we see the best relative value.” The latest dislocation fund saw more than half (55%) of its commitments come from new investors, which Varde President Jon Fox said was raised with no in-person meetings. “The strong demand for this strategy is from a diverse, global investor base underscores expectations for a deep credit cycle,” Fox added.

Varde raises nearly $3bn for dislocation strategies

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