Steadfast Alcentra fund taps ex hedge fund manager

Michael Tamasco will lead the debt fund, which targets senior and subordinated debt in the US and Europe. 

Steadfast Companies and Alcentra’s newly launched mid-market lending fund has brought on former hedge fund manager Michael Tamasco as president, the fund said on Tuesday.

Before joining the Steadfast Alcentra Global Credit Fund, Tamasco most recently served as managing director and head of North American business at Optima Fund Management, a hedge fund and alternative investment firm, according to a statement.

Prior to Optima, Tamasco was co-head at Rothschild Asset Management US and global co-head of distribution at the Rothschild Group.  He has also worked at Lazard, PaineWebber and Sanwa Securities.

Steadfast and Alcentra were not immediately available to comment further.

His hire comes little over a month after the two firms launched the vehicle, which conducted an initial public offering of $3 billion in common stock at an initial price of $9.68 per share.

The fund provides floating- and fixed-rate senior secured loans, second lien loans, subordinated debt and minority equity investments to companies with EBITDA of between $5 million and $50 million in western Europe and the US. 

Steadfast Alcentra Global Credit Fund investments range in size from $5 million to $15 million, with the aim to build a portfolio of over 100 positions, and seeks to invest in debt with interest rate coupons of  6-10 percent on senior term loans, 10-11 percent on second lien investments and 12-15 percent on mezzanine debt, according to the prospectus filed in May with the US Securities and Exchange Commission.

“In a low-yield environment, direct lending offers the potential for attractive risk-adjusted returns, with low correlation to other asset classes,” Tamasco said in the statement. Alcentra, a subsidiary of Bank of New York Mellon that manages below-investment-grade credit, sub-advises the vehicle. Steadfast, an investment company based in Irvine, California, is the investment advisor for the fund.