Balbec raises $1.2bn for NPL fund – exclusive

The vehicle, which invests in NPLs already subject to insolvency, is Balbec’s first fund to break the $1bn mark.

Specialist non-performing loan investor Balbec Capital has raised $1.2 billion for its fourth credit fund, beating its initial $1 billion target.

The fund, called InSolve Global Credit Fund IV, held a final close with commitments from existing Balbec clients and a number of new global institutional investors. It raised considerably more than its predecessor vehicle, which closed on $727 million in May 2018. Insolve Global Credit Fund II closed on $629 million in 2015 and its first fund closed on $143 million in 2012.

Balbec invests in a subset of non-performing loans where borrowers are subject to insolvency proceedings, restructuring or liquidation. The fund is already 45 percent deployed. It invests globally and across various asset types to source opportunities while managing macro risks.

The firm said its deep expertise in global bankruptcy regimes and longstanding industry relationships will enable it to source opportunities within its niche.

Commenting on the fundraising, Balbec’s founding partner and CEO, Charles Rusbasan, said: “We are pleased with the fund’s portfolio construction and believe we are well-positioned to capture opportunities globally by transacting with speed, certainty and discretion. We expect the pipeline of opportunities to remain robust as we look to build upon our track record of successfully investing across market cycles.”

Rusbasan was previously the founder of Bear Stearns’ max recovery unit, devoted to Chapter 13 bankruptcy debt.

Since it was founded in 2010, Balbec has invested $5.2 billion in more than 300 transactions across 19 different countries.