Balbec closes fifth credit fund at $1.5bn

US-based alternative asset manager Balbec Capital has held a final close of its fifth flagship fund with total commitments of more than $1.5 billion.

The vehicle, InSolve Global Credit Fund V, received support from existing and new Balbec clients with more than 70 percent of LPs in its previous vintage returning for IGCF V. Commitments came from public and private pensions, wealth managers, endowments and foundations and other institutional investors. The fund is accompanied by an additional $100 million expandable co-investment vehicle.

Balbec said the fund will continue its existing strategy of investing in credit-sensistive financial assets such as residential, commercial and consumer whole loan portfolios covering both performing and non-performing assets, as well as those subject to bankruptcy and other structured repayment plans.

To date the fund has called 82 percent of commitments and expects to be fully called by the end of the year with continued investment via recycling and asset sales.

Peter Troisi, partner and head of investments, Americas, at Balbec Capital, said: “We are fortunate that our opportunity set exists throughout cycles, in good economic times and bad. We have a rigorous selection process for the assets we acquire and thus have conviction in their credit performance.

“Financing/capital markets are experiencing headwinds as they see-saw between inflationary and recessionary concerns, but we’ve navigated these events before and see them as shorter-term roadblocks. We also have some assets that outperform in higher rate environments and expect to selectively monetise them to take advantage of new opportunities.”

Since it was founded in 2010, Balbec has deployed more than $14 billion in 22 countries. Its previous vintage closed in 2020 with $1.2 billion of capital commitments.