Paulson & Co is approaching investors to raise a $1.5 billion distressed debt fund, Bloomberg reported.
Paulson Strategic Partners Fund will focus on illiquid distressed credit investment including bankruptcy, restructuring and rescue financing, the report said.
Investors will be charged fees on invested, rather than committed, capital. The fund will target a 2x money multiple.
A spokesman for the fund did not respond to a request for comment.
Alternative investment firm Paulson makes long and short bets on credit, distressed debt and other corporate events.
It is the latest in a slew of managers to launch closed-ended distressed debt funds. Oak Hill Advisors, Carlyle and Sankaty are all on the road, while Oaktree’s $10 billion Opportunities X Fund remains open to investors as appetite for the strategy grows.
As well as managing hedge funds, the firm has real estate private equity funds which focus on distressed real estate recovery opportunities.
The firm, led by John Paulson, rose to prominence after a series of spectacularly profitable bets on US subprime mortgage bonds.
It managed roughly $19 billion, as of 1 March 2015, and has offices in New York, London and Hong Kong.