GoldenTree Asset Management closed its Distressed Fund IV with $3 billion in investor commitments as well as employee and firm commitments of over $100 million.
Distressed Fund IV is expected to invest in distressed, stressed and special situation assets. Early investments are delivering a net internal rate of return (IRR) of 30%.
Officials said that the predecessor fund, GoldenTree Distressed Fund III, has delivered a net IRR of 26% through Aug. 31 and has invested over $2 billion across more than 40 issuers in 15 different sectors.
“Fund IV’s oversubscription highlights the confidence our clients have in GoldenTree and our strategies amid global uncertainty,” said Steve Tananbaum, founding partner and chief investment officer at GoldenTree which now has $47 billion in assets under management. “We’ve invested over $30 billion in distressed assets since 2000, and our distressed strategies have been a key driver of GoldenTree’s growth over time.”
The size of investors’ commitment to GoldenTree’s distressed funds has grown significantly since Distressed Fund I in 2010, he said.
“Our differentiated team allows us to provide leadership in restructuring and turnaround processes and to maximize value by right sizing balance sheets, improving corporate governance, overseeing the execution of turnarounds and facilitating strategic exits,” said Ted Lodge, partner and global head of restructurings and turnarounds at the firm. He is also a member of GoldenTree’s distressed committee.
“Our results demonstrate the success of our process and confidence in the work we are doing,” Lodge added.