Tuesday, January 31, 2023

Alpha Wave and Chimera launch $2bn private credit fund


  • Former Blue Ridge MD, Rick Gerson, sees “large opportunity”
  • Abu Dhabi and New York firms combine in $2bn venture
  • Deal comes after Nuveen buys Arcmont to create $60bn unit

Alpha Wave Global, the New York-based firm formerly known as Falcon Edge, has teamed up with Abu Dhabi investor Chimera Capital to launch a $2bn private credit fund.

The new capital pool has a global mandate and will invest primarily in private loans, targeting “themes where capital shortages or idiosyncratic reasons result in attractive investment prospects,” according to a statement.

“We think there is a clear need and large opportunity across cycles for private credit for both investors who desire yield in a low risk structure and for companies seeking credit solutions,” said Rick Gerson, chairman and CIO of Alpha Wave Global.

Tap into hedge funds and private markets with Alternative Fund Insight’s free weekly email. Sign up here

Gerson, previously managing director of New York hedge fund Blue Ridge, founded Falcon Edge in 2012 with Eton Park pair Navroz Udwadia and Ryan Khoury.

It started out investing in public equities but has shifted to private markets investing focus and renamed last year.

The move follows the foundation of the credit strategies department at Chimera Capital, a unit of U.A.E-based Chimera Investment.

“[The deal] comes on the back of significant growth across our venture capital, public equity business, as well as our advisory platform,” said Seif Fikry, CEO of Chimera Capital.

By broadening the product offering through this and other planned launches, we hope to position ourselves at the forefront of the evolving regional asset management industry.”

Now read: Nuveen buys Arcmont to create $60bn private debt unit