Banner Ridge Raises $2.15 Billion for Flagship Secondary Fund

Banner Ridge Partners raised $2.15 billion for a secondary fund that will buy stakes in existing funds that invest in distressed debt and special situations.

That surpassed the firm’s $1.4 billion target, co-founder Anthony Cusano said in an interview, noting that higher interest rates and a lack of liquidity in the market are creating investment opportunities.

Pension funds and family offices were among institutional investors that made capital commitments for the vehicle, New York-based Banner Ridge said Wednesday in a statement.

Secondaries investors acquire positions in private funds from existing backers or provide capital for new vehicles that are set ...