CarVal Raises $3 Billion for Europe-Focused Distressed-Debt Fund

CarVal Investors LLC, the asset manager owned by commodities trader Cargill Inc., raised $3 billion for a distressed-credit fund.

The CVI Credit Value Fund III will purchase loans being liquidated by European banks along with corporate securities and structured-credit investments, according to Ann Folkman, a spokeswoman at Hopkins, Minnesota-based CarVal. The company also hired Roger Newkirk, an emerging-markets debt trader from UBS Group AG this month, Folkman said.

CarVal, with about $10 billion in assets, is bidding to buy Irish real-estate loans with a face value of about $4.8 billion along with Goldman Sachs Group Inc. from Lloyds Banking Group Plc, people with knowledge of the matter said in June. The money manager, founded by Cargill in 1987 to focus on proprietary and high-yield debt trading, has been buying assets from banks that are shrinking balance sheets to meet stricter capital rules.

The firm hired Jerry Keefe, who previously headed the distressed-debt trading group at Goldman Sachs, in March.

He joins Lucas Detor and David Chene, who held a similar role at Morgan Stanley and Credit Suisse Group AG before joining the hedge fund. CarVal also hired four high-yield traders from Macquarie Group Ltd. earlier in the year