Candlewood credit fund raises over $300m

The long/short credit trading firm has raised $313m for a vehicle that takes positions in a mix of assets and mortgage-backed bonds.

New York-based Candlewood Investment Group has raised $313.25 million for the fourth close of Candlewood Structured Credit Harvest Fund (Harvest Fund), according to a regulatory filing.

 The firm declined to comment on the fundraising.

The fund which launched in August 2012 has filed information relating to three previous closes, with the first raising around $14 million, regulatory filings show.

The consequent closes included investors from its Structured Credit Fund, a vehicle that closed two months before the launch of Harvest Fund, according to a report from Hedge Fund Alert. Harvest Fund collected $166.24 million and $261 million in the second and third close in 2013 and 2014 respectively.

The vehicle, which invests in fixed income and hedging markets, takes long and short positions in a mix of assets and mortgage backed bonds. The fund is managed by Gregory Richter and Brian Herr.

Richter and Herr have been with the firm since 2006 and 2008 respectively, ahead of the firm’s spin-out from Credit Suisse in 2010. Candlewood managed about $3.1 billion in assets as of June 30, 2015.

Roughly half of the firm’s $3.1 billion in assets under management is invested in two structured credit funds with the rest invested in event-driven and distressed corporate credit strategies.

Candlewood’s structured-credit investments span assets including debt instruments backed by aircraft operating leases, student debt, subprime mortgages and collateralized debt obligations, according a report by Bloomberg.