PSource plans further fundraising for debt fund
LONDON, August 14 (Reuters) - Fund firm PSource Capital plans to raise further assets for the 69 million-pound ($129.2 million) PSource Structured Debt (PSSD.L) fund to grow it to 100 million pounds or more by the end of the year. Chief executive Soondra Appavoo also told Reuters he aims to double the size of the fund within a year and is also planning further listed fund launches.
PSource Structured Debt invests in senior secured debt and warrants issued by North American micro-caps and aims to take advantage of banks' reduced willingness to lend in this area, particularly since the onset of the credit crisis.
The fundraising comes as many listed funds struggle to raise money in volatile markets, although some funds in areas such as hedge funds have attracted assets.
Hedge feeder fund BH Global (BHGG.L) raised $1 billion in May. In June PSource Structured Debt raised a further 26 million pounds.
"A couple of months ago we wouldn't have planned this, but the fund's on a premium (to net asset value) and we've got the performance. We'd like to reach $260 million in the next 12 months," Appavoo said on Thursday.
The fund's net asset value rose 7.06 percent in the final five months of last year and in the first half of 2008 it rose 8.7 percent. Appavoo also said the firm wants to launch another listed fund within the next 12 months and aims to have three by the end of 2009.
He said he is considering possibilities in China infrastructure and U.S. global macro or long/short equity hedge funds.
"I think there's room for another mainstream permanent capital global macro hedge fund," he said.
In January the firm said it was planning to raise at least $100 million for a fund to invest in non-performing loans in Southeast Asia, although this has since been postponed.
