Atalaya seeks up to 70% more capital for Fund IV

The New York-based firm’s previous vehicle for its financial assets-focused strategy was oversubscribed.

Atalaya Capital Management has held a first close on its latest fund making investments secured by financial assets, putting it almost halfway to the vehicle’s $900 million target.

The New York-based firm has locked down $434.95 million for Atalaya Asset Income Fund IV, according to a regulatory filing with the US Securities and Exchange Commission. The predecessor vehicle, Fund III, was oversubscribed, according to a December 2016 statement announcing the final close, hitting its hard-cap of $525 million, surpassing its $500 million goal.

A firm representative could not be reached for comment.

Fund III’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 Alaska Permanent Fund Corporation also invested in Fund III.

It originated 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.

In June, Dyal Capital Group, which invests specifically in alternative asset managers, took a minority stake in Atalaya, money the investee planned to use to boost its general partner commitments to its commingled funds. Atalaya made a contribution of $8 million to its $800 million Atalaya Special Opportunities Fund VI and a $5.25 million commitment to its $525 million Atalaya Asset Income Fund III, a source familiar with the matter told Private Debt Investor at the time.

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.