London-based Fauchier Partners has launched a fund of hedge funds focusing on special situations.
The objective of the new Jubilee Special Situations Fund (JSSF) is to provide investors with the premium returns more commonly associated with longer term and less liquid investments. JSSF has a return target of LIBOR plus 8 per cent. It has been designed as an ideal vehicle for investors who are able to commit funds for longer time periods and who require diversification from and better liquidity terms than typically offered by private equity investments.
JSSF will comprise a portfolio of hedge funds investing across the capital structure of both private and publicly listed companies. A significant proportion of JSSF assets will be in less liquid situations such as distressed debt, direct lending, structured public and private equity. The balance will be invested in more traditional value-based investments.
JSSF, which is the latest fund in Fauchier Partners' Jubilee range of fund of hedge funds for institutional investors, was launched on 1 April with approximately USD 50 million committed. It will initially be open for investment until June 2007.
Fauchier Partners, founded in 1994, is a specialist London-based firm, which manages a variety of funds of hedge funds and also advises a number of listed closed-end funds of hedge fund vehicles. It has the equivalent of approximately USD 4.7 billion under management.
Fauchier Partners' clients include academic institutions, banks, charities, family offices, fund management groups, insurance companies and pension funds based in Europe, the Middle East, the Far East and Japan.