10/07/2008

Highbridge gets set to raise $1bn

Highbridge Capital Management will attempt to raise $1bn from wealthy investors for a fund focused on buying bank assets that have been negatively influenced by the credit crisis, according to a report in the New York Post.

The Highbridge Leveraged Loan Partners will aim to take advantage of the plunging prices of bank paper over the past 18 months. The launch will see Highbridge join the ranks of Fortress Investment Group and Goldman Sachs in the aim of buying up cheap bank debt.

The fund, the marketing for which reportedly started about two weeks ago, will require investors to commit to a three-year period during which they will be unable to withdrawal capital, according to an unnamed investor.

JPMorgan, which bought a controlling stake in Highbridge about four years ago, has helped the firm to become one of the largest US hedge fund managers.