Varde closes $2bn fund

Varde Fund XI will make investments in distressed and alternative credit opportunities in the US and Europe.

Global alternative lender Varde Partners has closed a $2 billion fund that will invest in distressed and other alternative credit opportunities, as announced in a statement on Wednesday.

Varde Fund XI will invest in US and European corporates as well as sovereigns, financials, structured products, US real estate, specialty finance and global transportation.

The fund attracted capital from state and corporate pensions, endowments, foundations and funds of hedge funds in the United States, Europe and Asia. Approximately 80 percent of the investors in Fund XI were investors in Varde’s predecessor funds.

The Florida State Board of Administration’s latest annual report shows that its investment in Varde Fund X appreciated from $91 million as of 30 June 2012 to $125.3 million as of 30 June 2013.

George Hicks, co-founder and co-chief investment officer of Varde, said: “We are extremely pleased that so many of our historic limited partners continue to invest with Värde and have supported us over the last 20 years.”

On Wednesday, Private Debt Investor reported that Pennsylvania Public School Employees’ Retirement System (PSERS) had committed up to $150 million to Varde’s Scratch and Dent Fund.

The firm has $8.5 billion AUM and has offices in Minneapolis, London and Singapore.