Barakett-Backed Stabilis Raises $540 Million for Distressed FundAinslie Chandler
Stabilis Capital Management, backed by the family office of former hedge fund manager Timothy Barakett, has raised $540 million for distressed investments.
Stabilis, started by Salman Khan in 2010, will invest in debt secured by hard assets including real estate, and other opportunistic deals, according to a statement on Wednesday from the New York-based firm. The fund, the firm’s fourth, will focus on the U.S. and may also invest in Northern Europe.
Stabilis raised the money amid increasing investor appetite for distressed opportunities globally. Oaktree Capital Group LLC, the world’s biggest distressed-debt investor, put $400 million into energy assets in the fourth quarter, amid falling oil prices. The Los Angeles-based firm is also gathering $10 billion for its next fund.
Barakett’s family office, TRB Advisors, is the fund’s biggest investor and he serves as Stabilis’ non-executive chairman. Barakett founded and built hedge fund manager Atticus Capital before returning investors’ money and winding down the firm in 2009. While at Atticus, Barakett sought undervalued investments and pushed for changes at companies to try to boost their share prices. He established TRB in 2010.
Andrew Moesel, a Stabilis spokesman at Weber Shandwick, declined to say how much TRB had committed to the fund.
The new fund surpassed the $350 million Stabilis collected in 2013 for its third fund, and the $180.6 million it raised for a fund the prior year, according to data compiled by Bloomberg. Khan previously worked at Silver Point Capital and Goldman Sachs Group Inc.
Other hedge fund managers including billionaires George Soros and Steven A. Cohen have returned money to investors and converted their hedge funds to family offices. Through the firms they can continue to invest their personal money and that of some relatives.