Balbec Capital’s second credit fund beats target

The vehicle invests in discounted insolvency claims across Asia, Europe and North America.

Starwood affiliate Balbec Capital has closed its second global credit fund on $629 million in commitments. Insolve Global Credit Fund II’s (IGCF-II) final total is ahead of the fund’s $500 million target, as disclosed in a Securities and Exchange Commission filing in June last year. 

“We are pleased with the strong support for IGCF-II from a group of partners that includes family offices, wealth management firms, endowments, insurance companies, foundations and other investors from around the world. Balbec Capital's deep experience and extensive relationships in the consumer insolvency receivables market, coupled with Starwood Capital's operational support, represents a powerful combination for investors,” said Warren Spector, co-chairman of Balbec Capital.

Like its $150 million predecessor fund, Insolve Global Credit Fund II will invest in discounted creditor claims and asset bankruptcies. The firm focuses on the unsecured consumer credit market, buying credit card and other personal loan claims subject to court-approved and administered payment plans.

The new fund has already invested roughly $200 million of its $629 million in equity commitments. The firm is based in London but operates in North America and Asia as well as Europe and has a presence in five countries, according to its website. 

The vehicle’s strategy is driven by the firm’s chief executive officer, Charles Rusbasan, who was instrumental in establishing the consumer insolvency investment market 20 years ago when he approached Bear Sterns to set up a debt recovery business. The US bank opened Max Recover and eCast Settlement, with Rusbasan as CEO of both firms. 

“IGCF-II continues the successful approach of its predecessor fund, with a focus on seeking out investments with the potential to generate attractive risk-adjusted returns that are uncorrelated to the capital markets, and providing capital to sellers for assets in which there is not a ready capital market. We are one of the few buyers of consumer insolvency receivables with the resources and experience to invest in these assets on a truly global basis,” said Rusbasan.

Rusbasan and his team set up Balbec Capital in 2010 and became affiliated with Starwood Capital Group in 2011, raising IGCF-I in 2012.