London-based European credit manager AlbaCore Capital Group has raised more than $1 billion for a dislocation strategy, including commingled commitments and separately-managed accounts.
The firm has been investing from the strategy since the height of the pandemic’s first wave in March this year. In April, we reported that it had around $750 million for the strategy at the time and that the final target was $1 billion. The firm declined to comment.
AlbaCore says its dislocation strategy had generated a 55 percent gross internal rate of return to the end of November 2020. The firm said it waited for what it considered strong credits to come into its price range in what it viewed as a credit picker’s market.
“We were in a unique position to move quickly and yet maintain AlbaCore’s disciplined process and depth of credit analysis,” said Bill Ammons, founding partner and portfolio manager officer at the firm. “The team’s persistent fundamental credit research combined with our 2019 CLO warehouse launch generated an extensive watch-list that covered a significant portion of the European universe. When the price was right, we were ready.”
Founded in 2016, AlbaCore says it has invested more than €8.7 billion in liquid investments since inception, delivering a 10.9 percent gross IRR as of the end of November. It says it has seen significant activity across public markets in light of this year’s market volatility. In June this year, the firm priced its first collateralised loan obligation, which had a strong emphasis on ESG factors.
While the firm has been mainly focused on liquid opportunities this year, it has also committed $2.4 billion to large, off-market private transactions alongside co-investors.