Aladdin Capital Holdings launched a fund to invest in debtor-in-possession companies.
The fund the first of its kind, Aladdin said in a news release will help corporations that have defaulted on their debt to go through their financial restructuring plans.
In the release, Aladdin said that due to current market conditions, many historical DIP financing providers have either exited or significantly curtailed lending activities. This provides a tremendous opportunity to capture meaningful market share.
The DIP fund would appeal to endowments and pension funds that are looking for low volatility and highly attractive risk-adjusted returns, CIO Neal Neilinger said in news release.