Arini Capital, the credit hedge fund firm launched by former Credit Suisse trader Hamza Lemssouguer in 2022, has reported strong performance rebound for its flagship fund which posted a 7% gain in July after a disappointing first half of the year, according to a report by Bloomberg.
The report cites an investor letter seen by Bloomberg as highlighting that last month’s gain saw the Arini Credit International Fund recover from a minor loss earlier in the year to notch a 6.6% YTD gain at the end of July.
Arini’s Structured Credit Equity fund, meanwhile, recorded a 3.2% decline over the same period.
In the letter, Lemssouguer detailed how the Arini credit strategy shifted a third of its portfolio into distressed credit, yielding profits when some of those investments paid off. As traditional corporate financing sources pull back, a considerable amount of debt, raised during times of low-interest rates, is now maturing.
“This shift is creating a funding gap that we believe will see many European borrowers lack access to financing, despite having high-quality assets and strong financial profiles,” Lemssouguer stated in the letter.
Launched in 2022 with around $1bn in assets from investors including Squarepoint Capital, Arini now manages $5.2bn. This year alone, the firm has raised $831m and is aiming to secure an additional $500m for its credit fund before closing to new investors, according to the letter.
