Aurelius Capital Management has launched its second private debt fund targeting the UK and Irish secondary-loan markets, with a fundraising target of EUR 450 million. The fund reached its first close in May 2022, raising approximately EUR 280 million from a diversified base of institutional investors.
Aurelius Capital Management, headquartered in New York, manages approximately USD 5.7 billion in assets across real estate, infrastructure, special situations, and pre-IPO debt strategies. The firm's stressed-assets fund has grown to more than EUR 1 billion in assets under management, establishing Aurelius as one of the more active participants in European distressed and special-situations credit.
The Aurelius Fixed-Income Capital Fund, launched in November 2021, is the firm's second private debt vehicle focused on the UK and Irish markets. The fund makes direct investments in early-, growth-, and late-stage companies, with individual ticket sizes typically ranging from EUR 15 million to EUR 30 million.
“We have set a minimum ticket size of EUR 15 million for investors because we want to diversify the investor base, and we plan to reach final close with commitments of at least EUR 400 million and a maximum of EUR 450 million by the middle of September.”
The fund operates with a long-term investment cycle of up to nine years, with a minimum commitment period of five years, reflecting the illiquidity premium inherent in the secondary-loan strategy. The structure is designed to allow the manager sufficient time to source, underwrite, and manage a diversified book of senior and mezzanine positions across the UK and Irish markets.
Industry data suggests that the performance differential between the best and worst private debt managers can be as wide as 15 to 20 percentage points in terms of net IRR, underscoring the importance of manager selection in the asset class. Aurelius's track record in the stressed and distressed credit space, combined with LSM Management's distribution capabilities, positions the fund to attract a broad base of institutional allocators seeking exposure to an optimal alternative-credit portfolio.
About Aurelius Capital Management
Aurelius Capital Management has been managing institutional capital since 2006. The firm was founded by Mark Brodsky, formerly of Elliott Management, and has grown into a multi-strategy credit platform with particular depth in distressed and special-situations investing. Eleanor Chan serves as portfolio manager, and the six most senior members of the investment team have an average tenure of 14 years with the firm, providing continuity and deep institutional knowledge across market cycles.
About LSM Management
LSM Management is a global strategic consulting and capital advisory firm that partners with alternative-asset managers to design, execute, and manage institutional fundraising campaigns. With a presence across major financial centres, LSM provides end-to-end support encompassing investor targeting, marketing-material development, roadshow coordination, and ongoing investor-relations services. The firm works across private equity, real estate, private credit, and infrastructure mandates, serving an international client base of fund managers and institutional investors.