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Sona AM raises $800m for second capital solutions fund

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Sona Asset Management, a London-based alternative asset manager investing across credit, has successfully raised $800m for its second capital solutions fund, targeting businesses struggling to secure financing amid a retreat by traditional banks, according to a report by Bloomberg. 

According to an internal memo, the fund surpassed its initial $500m target and will be deployed across European credit markets, drawing existing and new investment from sovereign wealth funds, insurance companies, endowments and pension funds. 

John Aylward, Sona’s founder and CIO, wrote: “Given the ever-changing landscape of credit markets, opportunities emerge where the traditional set-up falls short.” 

Sona initially raised $300m for its first private credit capital solutions fund in 2020. 

As banks pull back due to a rise in interest rates and increased financial distress, asset managers like Sona are stepping in to fill the gap. In a similar move, Arcmont Asset Management raised about €800m for its capital solutions fund in 2022.  

Sona joins asset managers including Diameter Capital Partners, DWS Group, Pacific Investment Management, PGIM and T Rowe Price that are either acquiring or building private credit businesses to capitalise on the higher fees these strategies can command. 

Founded in 2016 by Aylward — a former Deutsche Bank trader and Highbridge Capital Management portfolio manager — Sona initially managed about $300m exclusively for Paloma Partners before opening up to external investors. The credit manager now oversees approximately $8bn and employs 72 people, according to the company’s website. 

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