PIMCO raised more than $1.5 billion for a private pool to buy assets from banks looking to strengthen their balance sheets, according to two people with knowledge of the fundraising.
Pacific Investment Management Co. is still accepting money and expects to raise $2 billion to $3 billion in total before a final close later this year, said an investor briefed on the plans.
The PIMCO BRAVO fund, short for Bank Recapitalization and Value Opportunities, will buy debt such as troubled commercial and residential mortgages, and might invest directly in banks through securities including warrants and convertible debt, said the sources, who asked not to be named.
PIMCO has raised at least $6.5 billion from institutional clients to buy troubled mortgages and bonds backed by real estate loans since the global financial crisis began in late 2007.
The BRAVO fund will target smaller lenders and community banks and will be run by a team of PIMCO fund managers led by Dan Ivascyn, a portfolio manager in the mortgage- and asset-backed securities group, and Scott Simon, head of the MBS and ABS group, according to the investor. PIMCO also hired professionals from real estate investment firm JER Partners, the investor said.
Mark Porterfield, a PIMCO spokesman, declined to comment.