New manager Crayhill looks to complex private debt

The capital management firm is seeking to replicate the strategy of established names, Apollo and Fortress.

Recently-formed Crayhill Capital Management is working on a private debt strategy, PDI understands. 

The firm, which was registered in July, plans to start investing in complex private financings for companies including distressed firms.

Three of Crayhill’s four founders have backgrounds in structured credit. 

Managing partner Frederick Horton worked at fund of funds LyonRossCapital Management and launched the structured finance group at GSC Partners. He also founded distressed mortgage and asset-backed securities firm StrategosCapital.

Horton co-founded Crayhill with managing partners Carlos Mendez and Josh Eaton, both from Magnetar Capital. Mendez and Eaton were portfolio managers in the fixed income group focusing on illiquid, structured credit and asset based investments. 

Joseph Thomas joined Crayhill in August as chief financial officer. He was previously CFO and chief operations officer at Dune Capital Management, a spinoff from Soros Fund Management. 

The debt strategy will work in tandem with Crayhill’s role as sub-adviser to Magnetar Solar Opportunities Master Fund and Magnetar Solar Holdings LP. The fund focuses on buying photovoltaic solar power assets globally, an opportunistic strategy that is winding down.

New York-based Crayhill manages $860 million in client assets, according to a filing with the Securities and Exchange Commission.