- Glendon Opportunities Fund is oversubscribed
- Firm expects to hold final close in December or January
- Former Barclays team netted 14.7 pct IRR on pre-fund deals
Glendon held its second close on $830 million in October. Glendon Opportunities Fund has attracted strong demand from investors and will likely hold a final close on its $1 billion target in December or January, sources said.
Limited partners in the firm’s debut fund include Pathway Capital Management, who is the fund’s anchor investor, as well as AT&T Pension, Hilton Foundation, Pritzker Group, University of Notre Dame and the State of Colorado, according to Los Angeles documents.
Los Angeles County committed up to $100 million to Glendon’s debut fund at its Dec. 10 Board of Investments meeting, Chief Investment Officer David Kushner said in an email. A spokesman for Glendon declined to comment.
Former Barclays distressed debt and special situations chief Matthew Barrett founded Glendon in April with Barclays Managing Directors Brian Berman, Holly Kim and Eitan Melamed. Glendon’s investment team managed more than $2.5 billion while at Barclays, netting a 14.7 percent IRR and 1.8x multiple on its investments, according to Los Angeles County.
The team will invest its debut fund in distressed securities across a variety of regions and industries, according to Los Angeles County documents. Glendon will invest between $20 million and $30 million per deal.
Glendon will charge LPs a 2 percent management fee on invested capital during the investment period and a 1.5 percent fee afterward. The firm’s founding partners will provide $30 million of the fund’s capital with the rest of its team providing an additional $10 million, according to Los Angeles County documents. All of Glendon’s LPs received the same terms on the fund.