Arini's flagship hedge fund experienced a sharp reversal of fortune, falling roughly 26% this year through October 23 after never previously recording an annual loss. To manage portfolio risk and secure liquidity, the firm has already sold portions of its performing speculative-grade assets, such as debt tied to Sabre Corp. In addition to offloading holdings to interested buyers, Arini has gathered $1.5 billion in fresh capital, deploying more than $400 million of those funds to date.
Key points
The alternative asset manager is actively shedding liquid, performing speculative-grade d…: The alternative asset manager is actively shedding liquid, performing speculative-grade debt like Sabre Corp. to generate necessary cash reserves.
Rising interest rates, high energy costs, and challenges tied to artificial intelligence…: Rising interest rates, high energy costs, and challenges tied to artificial intelligence have heavily pressured Arini's lower-rated credit strategies.
To stabilize operations alongside asset sales, the firm recently gathered $1.5 billion in…: To stabilize operations alongside asset sales, the firm recently gathered $1.5 billion in new funding from its investor base.
Sources checked by our analysis pipeline: 1
(Bloomberg) -- Arini Capital Management, which has been beset with losses this month, has gotten bids on some of its high-yield debt holdings from asset managers including Pacific Investment Management Co. and Oaktree Capital Management, according to people familiar with the matter.
London-based Arini, founded by Hamza Lemssouguer, has already sold some of its positions in large speculative-grade companies and dealers are holding talks with prospective buyers about offloading more, some of the people said, asking not to be identified because the discussions are private.
Arini has been primarily looking to sell some of its most liquid and performing assets as a way to manage its portfolio and raise cash, with the debt of Sabre Corp. a recent example, the people said. Still, many of the discussions are preliminary, and there’s no guarantee they will lead to deals, the people added.
Representatives for Pimco and Oaktree declined to comment. An Arini spokesperson wasn’t available for comment.
Arini’s flagship hedge fund, which managed $7.5 billion as of July, is down about 26% this year through Oct. 23 as credit markets buckle…
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