Key Takeaways
- • 400 Capital Management closed its fourth Asset Based Term Fund, ABTF IV, with $1.39 billion of committed capital, against a $1 billion initial target.
- • The fund launched in December 2023 and drew strong institutional interest, particularly from investors seeking diversification away from direct lending.
- • 400CM, an alternative credit manager with over $7.4 billion in assets under management, has already committed more than $400 million of ABTF IV capital to opportunities.
- • ABTF IV follows funds launched in 2017, 2019 and 2021, and the firm's first Asset Based Term Fund was fully retired in 2023.
Summary
Alternative credit manager 400 Capital Management LLC (400CM) has announced the final close of Asset Based Term Fund IV (ABTF IV), its latest private credit vehicle, according to a Business Wire release. The fund closed with $1.39 billion of committed capital, well above its $1 billion initial target. The firm described the raise as significantly oversubscribed and said it drew strong support from institutional investors attracted by its track record and expertise in asset-based private credit, with particular interest from investors seeking diversification from direct lending.
Chris Hentemann, Managing Partner and Chief Investment Officer at 400CM, attributed the demand to the firm's longstanding performance in asset-based credit and the diversification benefits investors continue to recognize. He said shifting regulatory conditions and an evolving economic landscape are creating new opportunities and market dislocations that the firm's platform is positioned to exploit, with a focus on patient capital and strong risk-adjusted returns. Chris Schiavone, Head of Private Credit Strategies at 400CM, said the firm has already committed more than $400 million to a diversified set of opportunities within the strategy.
The Asset Based Term Funds were launched in 2017 to invest in idiosyncratic credit opportunities arising from cyclical and regulatory catalysts across public and private credit markets in the U.S. and Europe. Target sectors include residential real estate, commercial real estate, consumer finance and specialty finance. ABTF IV follows the firm's three prior funds, launched in 2017, 2019 and 2021; ABTF I was fully retired in 2023. The release states that 400CM has offered a diversified approach to structured credit since its founding in 2008, managing assets across commingled funds, separately managed accounts and private credit portfolios. The firm, which has 70 professionals across New York and London, manages more than $7.4 billion for global institutional investors.
Chris Hentemann, Managing Partner and Chief Investment Officer at 400CM, attributed the demand to the firm's longstanding performance in asset-based credit and the diversification benefits investors continue to recognize. He said shifting regulatory conditions and an evolving economic landscape are creating new opportunities and market dislocations that the firm's platform is positioned to exploit, with a focus on patient capital and strong risk-adjusted returns. Chris Schiavone, Head of Private Credit Strategies at 400CM, said the firm has already committed more than $400 million to a diversified set of opportunities within the strategy.
The Asset Based Term Funds were launched in 2017 to invest in idiosyncratic credit opportunities arising from cyclical and regulatory catalysts across public and private credit markets in the U.S. and Europe. Target sectors include residential real estate, commercial real estate, consumer finance and specialty finance. ABTF IV follows the firm's three prior funds, launched in 2017, 2019 and 2021; ABTF I was fully retired in 2023. The release states that 400CM has offered a diversified approach to structured credit since its founding in 2008, managing assets across commingled funds, separately managed accounts and private credit portfolios. The firm, which has 70 professionals across New York and London, manages more than $7.4 billion for global institutional investors.
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