Fund: Corporate Opportunities Fund II
Amount raised: $424 mln
Pimco disclosed $424 million in commitments for Pimco Corporate Opportunities Fund II, a credit-oriented strategy from the unit of German insurer Allianz SE, according to filings.
The fund is raising money at a time of upheaval in the junk bond market sparked by distressed energy prices and other causes, prompting moves by investors to avoid higher risk debt.
Pimco did not return an email.
Among the LPs for the fund, Illinois Teachers’ Retirement System set plans to invest up to $100 million in the fund at its December meeting as part of its fixed income and real return program, according to a report.
Pimco, which stands for Pacific Management Co, didn’t disclose a target for Pimco Corporate Opportunities Fund II.
Its previous private equity fund sizes range from $2.4 billion to $4 billion, according to Bison. The fund includes a roster of 46 executives, according to the Form D filing.
The executives listed on Pimco Corporate Opportunities Fund II include key members of Pimco’s executive committee: Chairman Brent Harris, CEO Douglas Hodge, CIO Daniel Ivascyn; as well as Sudesh Mariappa, Thomas Otterbein and Mihir Worah, according to the firm’s website.
Four of the executives listed on the Form D for the fund were promoted to managing director last year: Richard Clarida, David Fisher, Richard LeBrun and John Murray.
Known primarily as a bond specialist, Pimco launched its alternatives practice in 2002 and employs about 100 investment pros worldwide with $15.6 billion managed in hedge funds and $16.2 billion in opportunistic and distressed funds, according to its website.
Kicking off its opportunistic investment effort in 2007, Pimco has since launched eight opportunistic strategies with investments in corporate credit, senior structured credit, tactical credit, mortgage and real estate.
Other private equity funds from Pimco include Pimco Bravo Fund I and Fund II, Pimco Distressed Mortgage Fund I and Fund II, and Pimco Distressed Senior Credit Opportunities Fund, according to Bison. Among those funds, Pimco Bravo Fund II, a real estate credit fund, raised $5.5 billion in 2014, according to the firm’s website. It’s expected to launch Pimco Bravo Fund III in 2016, according to an estimate from Bison.
In 2014, Pimco made headlines when founder Bill Gross left the firm to join Janus Capital Group. Investors pulled money out of some funds at around that time. In April of last year, Allianz CEO Michael Diekmann said the firm had no plans to spin off the unit at the time because of the “enormous synergies” between the life insurer and the asset manager.
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