Balbec Raises $560 Million for New Distressed Consumer Loan Fund

Balbec Capital, an alternative investment manager founded by Bear Stearns alumni, raised more than $560 million in its initial fundraising push for its fifth flagship fund, according to a person with knowledge of the matter.

The InSolve Global Credit Fund V is on track to become the asset manager’s largest, exceeding the $1.2 billion raised for Balbec’s fourth fund last year, the person said. The fifth fund will invest in non-performing consumer loans like mortgages and other debts of individuals going through Chapter 13 bankruptcy or equivalent global proceedings. Chapter 13 bankruptcy filers typically have regular incomes and develop ...