Orchard Global closes special opportunities fund on $2.5bn

The fund will target opportunities in bank loans due to regulatory conditions facing the industry.

Orchard Global Asset Management has held a final close of its latest fixed income and structured credit vehicle on $2.5 billion.

The Singapore-headquartered fund manager launched the Taiga Special Opportunities fund in the first quarter of 2017 and held a first close in July 2017.

The fund will look to exploit opportunities in the areas of bank regulatory capital and speciality lending that have emerged as a result of the changing regulatory environment faced by major financial institutions. Its approach will include helping banks enhance their existing lending and enable new lending as well as providing capital support for existing loans.

The fund is closed-ended but operates a hybrid lifespan structure to enable investors to continually reinvest their capital or exit after their commitment period.

Approximately 40 percent of the investors were existing OGAM clients while 60 percent of the capital was raised from new LPs, mostly sovereign wealth funds and large private and public pension plans.

The New Mexico Educational Retirement board committed $200m to the vehicle. Other investors include Manhattan and Bronx Surface Transit Operating Authority Pension Plan, Metropolitan Transportation Authority, Virginia Retirement System, New York Common Retirement Fund and Arizona PSPRS Trust.

OGAM funds aim to provide an annual average return in the low-to-mid teens. The firm has six private debt funds and currently manages $5 billion.