NEW YORK, Nov 19 (Reuters) - Solus Alternative Asset Management LP is launching a $750 million fund focused on distressed and stressed investment opportunities, according to a person familiar with the matter and a letter to investors Reuters reviewed.
The firm, which has $5.8 billion in assets under management, has already won commitments for $190 million and plans to continue fundraising through 2019, the person said.
With low interest rates, a booming economy and few defaults, there are scarce opportunities now for distressed investing.
Distressed and stressed investing targets companies or sovereigns, like Puerto Rico or Greece, facing financial difficulties or bankruptcy.
But Solus is raising new funds because it believes that current market dynamics are setting the stage for a significant increase in opportunities for distressed investing in the future, according to the letter from the firm’s chief executive, Christopher Pucillo.
Other firms think there are few options for distressed investing now, leading to a more favorable environment for Solus, according to the letter.
“As we continue to uncover interesting situations ... there is generally a decreased level of competing capital,” according to the letter.
The firm’s recent investments have included New Jersey homebuilder Hovnanian Enterprises Inc and Brazilian telecom company Oi SA.
Reporting by Jessica DiNapoli in New York; Editing by Peter Cooney