Ex-Canada Pension Manager Seen Raising $1.1 Billion for New Fund

A new fund set up by David Allen is close to securing a 1 billion-euro ($1.1 billion) investment from Canada’s Public Sector Pension Investment Board, according to two people familiar with the matter.

Allen’s AlbaCore Capital is also in talks with additional potential investors, said the people, who asked not to be identified because they’re not authorized to speak about it. The money manager was responsible for credit investments at Canada Pension Plan Investment Board in London until earlier this year. 

PSP, one of Canada’s largest pension funds, plans to quadruple its global credit investments over the next two decades. The firm entered the European leveraged-loan market earlier this year and established a credit office in New York in 2015.

An official for PSP said the firm is currently building its private debt business in North America and Europe, while declining to comment on specific investments. A spokesman for AlbaCore declined to comment on the investment.

Allen established and managed a credit opportunities fund at Canada Pension Plan that has invested more than C$9 billion ($6.9 billion) since he joined the firm in 2010, a person familiar with the matter said earlier this year. The fund returned an annualized 15.3 percent over the past six years, they said.

Allen hired Matthew Courey, former head of high-yield bond trading at Credit Suisse Group AG, and Joseph Novarro, former managing partner at investment firm Renshaw Bay, for his start up, a person with knowledge of the matter said earlier this year. They will both be partners at AlbaCore, the person said.

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