Certior Special Opportunities Fund targets European distressed debt market
HELSINKI – Certior Special Opportunities Fund (CSOF) has this week held a first close on EUR 35m with the support of a group of European institutional investors including pension funds and family offices. The new fund is managed by Certior Capital and is aiming to capture the opportunity arising from the significant wave of distressed loans that are emerging during the current global recession. It will invest in areas such as distressed debt, opportunistic strategies, special situations, non-performing loans and asset-backed securities. CSOF will build a diversified portfolio of 100+ assets through 6-8 primary fund investments – mostly smaller, high-conviction funds focusing on niche opportunities – and 10+ co-investments to access the full opportunity set. The fund has a target of EUR 75m and a final close is planned for May 2021.
“Investing in times of market dislocation and economic stress have historically produced the best returns in private markets. While many large funds with distressed or dislocation themes have been launched in recent months, we strongly believe that alpha is far more readily available for funds below EUR 500m in size and that transactions above around EUR 30m will usually end up as competitive situations which generally mitigates against outsized returns”, comments Ari Jauho, the Chairman of Certior Capital. “We have a long track record in working with new and emerging managers, often as a cornerstone investor and active co-investor, and are seeing a significant number of highly experienced individuals set up new funds in the current environment. We have already looked at over 50 potential fund and co-investment opportunities in this segment and have a number of deals in final due diligence”, he adds.
The fund is structured as a Finnish limited partnership (Ky). Borenius provided legal advice to Certior Capital.
About Certior Capital
Certior Capital is a leading private equity and private credit advisor and alternative investment fund manager supervised by the Finnish FSA. The firm’s core expertise is in European lower- and mid-market private equity and private credit markets, where the team’s experience is one of the longest in Europe. It focuses, in particular, on working with emerging mangers, concept funds and deal by deal teams in undercapitalised and underserved areas of the market.
Certior currently manages a number of separate accounts and four investment programs (excluding CSOF): Certior Credit Opportunities Fund and Certior Credit Opportunities Fund II invest in niche SME direct lending funds and makes investments directly into loans. Certior Credit Investments invests in European mid-market direct lending transactions and Certior Private Equity Fund I focuses on European small- and mid-market private equity opportunities.
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