Akin Gump represented 400 Capital Management, an alternative credit asset manager specializing in structured credit with over $5.7 billion of capital under management, in the formation and fundraising of its third credit fund, Asset Based Term Fund III (ABTF III).
The fund, launched in July 2021, drew $580 million of committed capital from institutional investors attracted to the firm’s demonstrated expertise in maximizing value through innovative asset-based private debt strategies, in particular as broad market volatility has upended more traditional strategies. The close of ABTF III follows the firm’s successful launch of Asset Based Term Fund II (ABTF II) in 2019, which closed with over $430 million in August 2020.
ABTF III invests in illiquid credit opportunities across public and private credit markets in the United States (U.S.) and Europe, primarily in the residential real estate, commercial real estate, consumer finance and specialty finance markets. The strategy aims to take advantage of the market dislocation in structured products that has produced significant liquidity premiums across a wide variety of asset classes, U.S. and European bank and GSE risk transfer solutions, specialty finance opportunities where regulated institutions do not participate and European bank deleveraging.
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The Akin Gump team advising 400 Capital Management was led by tax partner Joshua Williams and investment management partner James Deeken and included counsels Ryan Dahan and Graham McCall and associates Chris Smith and Abby Segodnia.