Deer Park Road, a distressed real estate and asset-backed fixed-income manager, will launch its latest fund, the Burgess Creek Fund, June 1.
The new fund, targeting institutional investors, will use the same unleveraged investment strategy that invests in bonds with steady monthly cash flow, high-yield characteristics and capital appreciation potential as the company's flagship STS Partners Fund. The older fund was closed to new investors in December with $750 million under management.
The Burgess Creek Fund, however, will focus on securities that are higher up in the capital structure and will be similar to a $170 million separate account strategy that Deer Park Road has been managing for a large U.S. insurance company, said Will Bashan, managing director in an e-mail. Mr. Bashan wouldn't identify the client
“When we started running this strategy as a separate account for one of our investors, it was a natural extension for us since it took advantage of the deal flow, systems and portfolio management process that we were already using to manage STS Partners Fund,” said Michael Craig-Scheckman, managing director, president and the fund's co-portfolio manager, in a company news release.
“A number of investors (have) express(ed) a strong interest in this strategy, so we decided to move ahead with the launch of Burgess Creek Fund,” Mr. Craig-Scheckman said.
Scott Burg, managing director, is the new fund's other co-portfolio manager.
Deer Park Road managed $939 million as of March 1.