Mudrick Stressed Debt Vehicle Gains 21% After CVC Fund Takeover

Mudrick Capital Management’s $600 million stressed credit fund gained 21% in 2021 following its absorption of a CVC Credit Partners fund that invested in troubled companies and other debt, according to a person with knowledge of the returns.

Mudrick acquired CVC’s $250 million Global Credit Opportunities Fund last January as the private equity firm’s credit arm pivoted away from stressed and distressed debt in favor of private lending. Mudrick combined the fund with investments in senior secured loans.

The firm also manages about $2.6 billion under its core distressed debt strategy, which returned 8% in 2021. Investments there made ...