Pacific Investment Management Co. is raising money for its largest-ever distressed-debt fund, according to people familiar with the plans, just as credit-market turmoil generates a flood of new targets.
Pimco is expecting to amass at least $3 billion for its new fund, according to the people, who asked not to be named discussing the private matter. It will focus on stressed and distressed debt as well as companies with limited access to capital, they said.
A representative for Pimco, based in Newport Beach, California, declined to comment on the process.
Marketing for the new fund began last year, and now it dovetails with last month’s market downdraft that almost quadrupled the amount of distressed assets in a matter of days. A wave of other money managers are raising money to go after mispriced assets, including Highbridge Capital Management, Sculptor Capital Management and Knighthead Capital Management.
Pimco’s new portfolio would be bigger than any of those funds. The managers plan to largely mimic the strategies of Pimco’s two previous corporate opportunities funds, but this one will dwarf them in size. Its earlier funds manage about $200 million and $1.5 billion, respectively, according to company documents.
© Copyright 2024 Bloomberg News. All rights reserved.