Atalaya Capital Management, an alternative asset manager focused on opportunistic credit and special situations investments, announced today that it has closed its fourth Asset Income Fund (AIF IV) at its $900 million hard-cap, exceeding its $750 million target. AIF IV’s investors are primarily public and corporate pension plans, foundations, and endowments.

In the first six months of the investment period, AIF IV has already closed on 12 investments and called more than 20% of its capital commitments. Atalaya attributes the relatively high velocity of capital deployment to the Firm’s deep pipeline of existing counterparty relationships and long-standing industry experience, as well as a robust opportunity set in specialty finance. This early activity demonstrates continued momentum from a strong 2017, during which Atalaya completed more than 30 transactions in the specialty finance space, funding more than $1 billion.

Like previous Atalaya Asset Income Funds, AIF IV will primarily originate loans and acquire credit-related assets in the financial asset and real estate sectors. Targeted investments include:

• Structured credit facilities to specialty finance companies, typically secured against small balance consumer and commercial loans/assets, including equipment leases;
• Select purchases of whole loans and credit-related receivables from a variety of small balance consumer and commercial finance companies; and
• Opportunistic real estate bridge, transitional and construction lending.

“We are pleased with the strong investor demand for our fourth Asset Income Fund and were substantially oversubscribed from our existing investors and select new investors. This reflects Atalaya’s expertise in an asset class that offers a compelling risk-adjusted return, both on an absolute basis and compared to other private credit strategies,” said Ivan Zinn, Atalaya’s Founding Partner and Chief Investment Officer.