Yves Blechner, a former portfolio manager at Man Group, is preparing to launch his own hedge fund, 44 Hill Capital Management, as he seeks to capitalise on opportunities across global high-yield and distressed credit markets, according to a report by Bloomberg.

Based in London, Blechner is targeting $500m in assets by November for the fund’s debut, according to an investor presentation seen by Bloomberg. The fund will run a concentrated portfolio focused on performing credit, special situations, and distressed debt strategies. Blechner has already secured several soft commitments, the document notes.

Blechner's launch ambitions come at a time when multi-strategy hedge funds dominate investor flows and talent, making standalone fund launches more challenging. This year, the average hedge fund launch size has ranged between $250 million and $300m, according to PivotalPath. Only a handful of funds are expected to debut with over $1 billion in capital.

Despite the competitive landscape, credit strategies have proven successful for several London-based managers. Sona Asset Management, led by John Aylward, has scaled to $13bn AUM since its 2016 launch, while Arini, founded by Hamza Lemssouguer in 2022, now manages $9bn.

Blechner, 44, brings significant pedigree to the launch. He joined Man Group in 2019, focusing on global high-yield and credit, and previously held senior roles at Deutsche Bank’s principal special situations credit team and BlackRock. According to the investor document, 44 Hill’s debut fund will have capacity for up to $2.5bn in assets. The firm also plans to launch two additional investment strategies in the future.

Blechner declined to comment on the launch plans.