Deer Park Road Corp is to launch a new mortgage/asset-backed fund, Burgess Creek Fund, having closed its flagship fund, STS Partners Fund, with USD750m currently under management.
The new fund will be a little higher up in the capital structure, but will have the same unleveraged, buy and hold investment approach and philosophy as STS Partners Fund.
The focus will continue to be on bonds with steady monthly cash flow and high-yield characteristics, along with capital appreciation potential.
The new fund’s strategy will be similar to what Deer Park has been using for a separate account that it has been running for a large institutional investor with USD170m currently under management.
“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,” says Michael Craig-Scheckman, portfolio manager and owner of the firm. “Since that time we have produced good results and had a number of investors express a strong interest in this strategy, so we decided to move ahead with the launch of Burgess Creek Fund.”