Barclays spinout nears first close

Glendon Capital Management, which spun out of the investment bank last year, is poised to hold a first close on $500m this month as it eyes $1bn for its maiden distressed debt fund.

Glendon Capital Management, a Santa Monica, CA-based distressed debt specialist that spun out of Barclays last year, is on track to raise $1 billion for its debut fund, according to sources close to the firm.

The Altair Global Credit Opportunities Fund will hold a first close later this month at about half its target amount, with a final close expected at about $1 billion in the autumn.

The firm was launched in April last year by Matthew Barrett, Barclays’ former head of distressed debt and his colleagues on the bank’s distressed team, former managing directors Holly Kim and Brian Berman. The three of them were at Barclays from 2006 to 2013 and also previously worked together at Howard Marks’ Oaktree Capital Management.

The team spun out of Barclays but continued to manage capital for the bank, as well as several managed accounts for other institutional investors. The new fund will be largely comprised of third-party capital however.