Pimco Said to Raise $1.5 Billion for Fund Targeting Bank Assets

Pacific Investment Management Co., manager of the world’s largest mutual fund, raised more than $1.5 billion for a private pool to buy assets from banks looking to strengthen their balance sheets, according to two people with knowledge of the fundraising.

The Pimco Bravo fund, short for Bank Recapitalization and Value Opportunities, will buy debt such as troubled commercial and residential mortgages, and may invest directly in banks through securities including warrants and convertible debt, said the people, who asked not to be named because the fund is private. Pimco is still accepting money and expects to raise $2 billion to $3 billion in total before a final close later this year, said an investor briefed on the plans.