Deleveraging Euro banks provide ammo for CarVal’s new $3bn credit fund


money-256319_1280CarVal Investors has held a $3bn final close for its latest credit fund, which it hopes will profit through loan portfolios from deleveraging European banks.

CVI Credit Value Fund III had only been in the market for just over a year, and raced to $1.1bn last November according to an AltAssets report at the time.

The latest raise is almost double the size of its second credit fund, which kept fundraising in spring 2013 despite bursting through its $1.5bn target.

CarVal, the independent investment arm of agricultural commodities trading giant Cargill, said the new fund would also seek to target corporate securities, liquidation claims and structured credit.

A total of 83 LPs backed the fund, including Cargill itself. The remainder included public and private pension plans, endowments, foundations, family offices and corporate investors.

CarVal president and CIO John Brice said. “We were very pleased with the strong reception to our latest credit offering and value the trust our investors have placed in us.

“CVF III is carrying forward a similar investment strategy as CVI Credit Value Funds I and II, investing across our core credit strategies or ‘four boxes’ of loan portfolios, corporate securities, liquidations and structured credit.

“However, given the continuing opportunities in European deleveraging, CVF III is more heavily weighted in loan portfolios out of the gate.

“We expect to balance this with corporate securities and structured credit opportunities during the second half of the investment period as the recovery ends and the dislocation of the next market cycle begins.”

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