Structured credit firm 400 Capital closes second fund

New York-based 400 Capital Management has closed its latest offering with $430 million in assets.

Asset Based Term Fund II (ABTF) launched in mid-2019 and this year was oversubscribed, taking the firm to over $4.4 billion in assets under management. The close of the new fund follows a successful asset raise it is first fund that totaled $206 million in 2017 and is now fully invested.

“400CM’s ABTF series continues to provide our investors access to unique innovative and opportunistic credit investments that require a patient capital approach and seeks to provide attractive absolute returns,” said Chris Hentemann, managing partner and chief investment officer.

The latest fund’s focus is illiquid credit across public and private credit markets in the U.S. and Europe. The areas of emphasis in residential real estate, commercial real estate, consumer finance and specialty finance markets.

According to 400 Capital, the strategy’s aim is to take advantage of market dislocations in structured products that produced significant liquidity premiums across a variety of asset classes, including U.S. Bank and government sponsored enterprise (GSE) risk transfer solutions, European bank deleveraging and specialty finance where regulated financial institutions do not participate.

So far ABTF II has deployed roughly 80% of its committed capital.

“There continues to be demand for patient, private capital to support regulatory capital, risk-sharing, balance sheet management, product development and dislocated markets,” said Hentemann. “We look forward to continuing to execute on the opportunity set with our partner investors.”