CarVal credit fund scores MassPRIM commitment

The CVI Credit Value Fund III, which is targeting $2 billion and a summer close, has raised $150 million from the Massachusetts Pension Reserves Investment Management Board.

The $62 billion Massachusetts Pension Reserves Investment Management Board (MassPRIM) has approved a $150 million investment in the CVI Credit Value Fund III at a board meeting on Tuesday (7 April). The fund has an overall $2 billion target and is planning to hold a final close sometime this summer, as PDI previously reported.

Other investors in the fund include the Fresno County (Calif.) Employees Retirement Association, which invested $30 million in December, and the New Hampshire Retirement System, which pledged $50 million to CarVal in February. The predecessor CVI Credit Value Fund II raised $2.3 billion in August 2013.

The firm also recently hired Jerry Keefe, formerly the co-head of the distressed debt trading group at Goldman Sachs. Keefe is currently on gardening leave and will be joining CarVal in the summer He will be working on the corporate securities team, which is one of several strategies that the CVI Credit Value Fund III will employ. He will be a managing director in CarVal’s New York office, reporting to David Chene who leads CarVal’s corporate securities investments in North America.

The Hopkins, Minnesota-based CarVal is led by chief investment officer John Brice (pictured). CarVal was founded by Cargill in 1987 as an expansion of its proprietary and financial trading business. In 2006, CarVal became an independent subsidiary of Cargill.

The firm now manages about $10 billion and handles hedge funds, private equity funds and other strategies. Its four main business lines are loan portfolios and structured credit, corporate securities and liquidations, real estate and special opportunities. In addition to its Minnesota headquarters, CarVal has offices in London, Luxembourg, New York, Paris and Singapore.