Tricadia Said to Start Financials Fund in Bet on Economy

Tricadia Capital Management LLC, the $3.4 billion New York-based credit-focused investment firm, started a fund to invest in financial services as it bets on a strengthening U.S. economy, according to a person familiar with the matter.

The Tricadia Financials Opportunities Fund, which started this year with $100 million in commitments, plans to make money in community and regional banks and specialty finance companies, said the person, who asked not to be identified because the fund is private. Tricadia aims to raise $300 million for the fund, the person said.

The firm’s co-chief investment officers, Michael Barnes and Arif Inayatullah, will manage the fund, which has a three-year investment period, according to the person. The two founded Tricadia in March 2003. The firm’s main Tricadia Credit Strategies fund returned an annualized 15 percent since inception in 2003, according to the person.

Before Tricadia, Barnes was head of structured credit arbitrage and Inayatullah was an executive director responsible for the development of structured credit arbitrage transactions within UBS Principal Finance LLC, a subsidiary of UBS Warburg Ltd. involved in proprietary trading.

Jim Crystal oversees Tricadia’s illiquid investments in the financial services sector.

Jonathan Gasthalter, a spokesman for Tricadia at Sard Verbinnen & Co., declined to comment on the start of the fund.

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