Monarch Alternative Capital is seeking $850 million for its third fund, according to a source.
The New York-based Monarch, a distressed asset investor, has not officially begun marketing, the person said. Instead, it is holding discussions with friends of the firm, and is expected to make a first close in the first quarter of 2014, the person said.
Lazard is the placement agent and “fundraising is expected to go quickly,” the person said.
Monarch, which buys the debt of troubled companies, was spun off from the Quadrangle Group in 2008. The firm has $5.5 billion in assets under management, according to its website. Monarch has “built a great business and [has] a great track record,” one GP said.
The firm’s prior fund raised $525 million in 2010.
Monarch has reportedly bought the debt of companies, including Hicks Sports Group and Dallas Stars Hockey franchise.
Earlier this year, GSO Capital Partners, the debt investing affiliate of The Blackstone Group, closed its second rescue financing fund at $5 billion.
Officials for Monarch declined comment.
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