Signal halfway to hard-cap for second fund – exclusive

The London-based firm, led by ex-Deutsche Bank executives, has collected €500m at the first close of its follow-up special situations vehicle.

Signal Capital Partners, a London-based fund manager, has raised just over €500 million at the first close of its second special situations fund, according to market sources. The firm itself declined to comment.

The fund, which was launched early in 2019, is targeting a second close later in the year and has a hard-cap of €1 billion for its final close, which is anticipated in the first quarter of 2020.

It has a target gross return of 15-20 percent and does not utilise fund level leverage. Investors include the likes of Israeli insurers, US endowments and a large UK institution. Many of these investors have re-upped from the first fund.

Signal was formed in 2015 and closed its first special situations fund on €720 million in October 2017. The team has five senior partners comprising former Deutsche Bank executives Elad Shraga (chief investment officer), Amit Jain (head of credit investments) and Gad Caspy (head of real estate investments), alongside Fredrik Metze (ex-head of European distressed investments at Fortress) and Colman McCarthy (ex-head of NPL investments at Kennedy Wilson).

The firm focuses on asset-backed corporate and real estate special situations lending, with individual investments in the range of €25 million to €75 million. Unlike many other special situations and distressed players in Europe, it has a focus on stronger Western European economies including Germany.

Appetite for special situations and distressed strategies is high, with such funds accounting for around 35 percent of total private debt capital raised in the first three quarters of 2019, according to provisional PDI data.