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Anticipating keen interest in the current market, Amsterdam-based Kempen Capital Management has launched a Diversified Distressed Debt Pool as part of its alternative investment range, giving all investor types access to the distressed debt market. In the current environment, “investors are looking for new ways to generate returns,” the firm said.
The market enables investors to purchase debt securities of companies under financial or operational distress, or in default or bankruptcy. Kempen expects the pool of funds to work as a safety net for companies burdened with debt by giving them access to new capital to help restructure.
The pool will be managed by five investment specialists and is open-ended allowing investors to enter monthly and exit quarterly (quarterly redemptions are up to 25 per cent of fund NAV). Kempen manages the selection, due diligence and monitoring, and also supervises the ESG policies of the funds, it said.
“As distressed debt is a cyclical phenomenon, funds that specialise in distressed debt often perform very well after a crisis,” Remko van der Erf, co-head of alternative strategies at Kempen, said.