Atalaya closes asset income fund on $525m cap

 The New York-based credit and special situations manager surpassed its $500m goal.   

Atalaya Capital Management has closed its third asset income fund on its $525 million hard-cap, past its original $500 million target, Private Debt Investor has learned.

The Atalaya Asset Income Fund III (AIF III) held its first close this June.

The AIF III has called close to 50 percent of its capital commitments over the first six months of the investment period. The fund’s investors include public and private pension funds, foundations, and endowments. The San Francisco Employees’ Retirement System made a $25 million commitment to the fund, a pension CIO report shows.

The firm declined to comment further on fundraising.

The asset income fund will originate consumer and commercial credit loans and real estate bridge and transitional loans, ranging from $10 million to $50 million and targeting a net return of 10 percent to 12 percent.

“We are pleased with the strong investor demand for our third asset income fund,” Ivan Zinn, the firm’s chief investment officer and founder, said in a statement. “Our oversubscribed position reflects Atalaya’s expertise in an asset class that offers a compelling risk-adjusted return, both on an absolute basis and compared to other private credit strategies.”

Atalaya also closed its sixth special opportunities fund at its $800 million hard-cap this March. Atalaya Special Opportunities Fund VI had a $750 million target. Pensions that invested in this fund include the Florida State Board of Administration, which committed $100 million, and the Public Employees Retirement Association of New Mexico, which earmarked $50 million, according to PDI data.

New York-based Atalaya focuses on special situations and credit investing through private equity-style funds. The firm targets real estate, specialty finance and corporate opportunities. It has over $2 billion in assets under management.