Värde Dislocation Fund closes on $1.6bn

Alessia Argentieri
10 November 2020

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Credit and distressed specialist VУЄrde Partners has held a final close for its VУЄrde Dislocation Fund on $1.6bn, exceeding its $1bn target after five months on the road.

Earlier this year, Värde also launched an additional $1bn dislocation fund that was raised through a private banking platform. The two vehicles bring the total capital raised by the firm specifically for dislocation strategies to more than $2.6bn in commitments.

"The unparalleled speed and disruption to society and markets has caused fundamental damage to the global economy," said co-CEO Ilfryn Carstairs. "The range of potential outcomes remains incredibly wide, and we expect varying degrees of impact around the world. Our platform is well-suited to the opportunity in front of us, with the ability to pivot to markets and geographies where we see the best relative value."

Värde is currently investing its 13th flagship fund, Värde Fund XIII, which closed on $2.47bn in December 2019, surpassing its initial €2bn target. The vehicle invests in a range of credit and credit-related assets globally, across liquid traded credit, special situations, real estate and financial services.

Established in 1993, Värde is a global firm specialising in credit and distressed strategies. The firm has invested $75bn since inception and currently manages more than $14bn on behalf of a global investor base. Its investments span from corporate and traded credit, real estate and mortgages, to private equity and direct lending. Värde employs 300 professionals across its offices located in the US, Europe and Asia.

Investors
Around 55% of commitments to the Värde Dislocation Fund came from new investors, and all commitments were raised entirely without in-person meetings, engaging investors through virtual platforms.

Investments
The Värde Dislocation Fund targets opportunities resulting from historic market dislocations and economic disruption brought on by the Covid-19 pandemic.

The vehicle has a flexible, global mandate to pursue a broad universe of mispriced, stressed and distressed credit.

People
Värde Partners – Jon Fox (president); George Hicks, Ilfryn Carstairs (co-CEOs).