SSG Capital Management has more than doubled the size of its previous distressed debt fund, having closed its third vehicle at its hard cap of $915 million on Thursday.
The fund, launched late last year, took just six months to reach its hard cap, according to sources close to the situation. Its target was $800 million – double the size of SSG Capital Partners II which launched in 2011 and held a final close on $400 million in November 2012. Mercury Capital Advisors acted as placement agent on both fundraises.
SSG Capital was unavailable for comment at press time.
The new fund was heavily oversubscribed, according to a source, with more than $1.4 billion of demand from LPs. The bulk of commitments came from investors in the US and the Middle East, followed by Europe, with a small number of Asian investors also committing capital.
A number of LPs in this fund had failed previously to gain access to Fund II, the source said.
The new vehicle will pursue an identical strategy to its forbear, and bears similar terms. It has a standard 2-and-20 fee structure, and has a target IRR of 25 percent and more than 2x return multiple.
The firm is led by managing partner and chief investment officer Edwin Wong. He co-founded Lehman Brothers’ special situations group in Hong Kong and also headed the bank’s credit businesses in the Asia-Pacific region before leaving to launch SSG. Partners Andreas Vourloumis and Shyam Maheshwari round out the senior team.