(Bloomberg) -- Polus Capital Management has raised $1 billion for its special situations strategy, with a significant commitment coming from Abu Dhabi Investment Authority, according to a person familiar with the matter.
The fundraising increases the assets of Polus’ special situations strategy, which focuses on secondary investments in bonds and loans as part of opportunistic, stressed or distressed situations, to about $5 billion, according to a statement on Wednesday.
Polus’ Special Situations business had $4 billion under management at the start of the year and has been actively raising capital since, the person said, asking not to be identified discussing private information. The business line includes a longer lock vehicle, which is in the market for its latest fundraise and is expected to close on €750 million in March 2025. The firm also has a hedge fund structured vehicle, the person said.
A prolonged period of higher rates has put pressure on companies’ balance sheets in recent years, and has created more opportunities for investors looking to scoop up loans or bonds at steep discounts.
London-based Polus was renamed after Cairn Capital merged with distressed debt firm Bybrook Capital. The asset manager — which is majority-owned by Mediobanca SpA — is split into three units: special situations, leveraged and structured credit, and specializes in alternative credit strategies.
The firm invests on behalf of institutional investors, including pension funds, insurance companies, endowments, foundations, sovereign wealth funds such as ADIA and family offices.
(Updates with market background in fourth paragraph, adds firm’s owner in last paragraph.)
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