NEW YORK, March 17 Highbridge Capital Management
LLC, a hedge fund manager owned by JPMorgan Chase & Co,
has raised a $5 billion mezzanine debt fund, a spokesman said on
Sunday, the latest alternative asset firm seeking to seize on
corporate credit opportunities.
Dave Millar, a spokesman for New York-based Highbridge,
confirmed the completion of the fundraising in an email
following a report by the Financial Times, which said the fund,
Highbridge Mezzanine Partners Fund II, was the largest mezzanine
corporate debt fund raised since the financial crisis.
Mezzanine funds invest in the least safe side of a company's
debt spectrum in exchange for higher returns that make them
appealing to yield-hungry investors willing to take on more risk
in times of low interest rates.
Last year, Blackstone Group LP raised a $4 billion
mezzanine debt fund to focus on opportunities in the United
States and Europe.
Highbridge, which manages about $29 billion in capital, sold
a majority stake to JPMorgan in late 2004 and was bought out
completely by the investment bank in 2009, according to
Among Highbridge's debt deals are private equity firm KKR &
Co LP's 955 million pound ($1.4 billion) acquisition of
British pet food retailer Pets at Home, and KKR and General
Atlantic LLC's $1.65 billion acquisition of defense contractor
Northrop Grumman Corp's TASC consulting unit.