Eton Park Capital Management LP, the hedge fund founded by Eric Mindich, raised more than $400 million for a hedge fund that will invest in trust preferred securities and collateralized debt obligations.
Credit Opportunities Fund II LP and its offshore affiliate closed on May 1 with about $401 million in capital commitments, the New York-based money management firm said in an amended investment adviser registration filed last month with the U.S. Securities and Exchange Commission.
Eton Park at the end of April had about $12.3 billion in assets under management, including the money committed to the new credit opportunities fund. The firm also runs global and emerging market funds that trade stocks and bonds and also make private-equity investments.
Trust preferred securities have become a popular way for regulated companies, such as bank holding and insurance companies, to raise required regulatory capital, according to the website of the law firm Smith, Gambrell & Russell LLP in Atlanta. They allow banks to raise capital for regulatory purposes and deduct interest payments for tax purposes.
Mindich was co-head of equities at Goldman Sachs Group Inc. until 2004, when he left the New York based securities firm to start Eton Park.
Jonathan Gasthalter, a spokesman for Eton Park, declined to comment.