LONDON U.S. hedge fund manager Emanuel 'Manny' Friedman plans to list a fund in London to invest in asset-backed securities and real estate assets put up for sale as a result of regulatory change in the financial sector.
Forty-year industry veteran Friedman, co-founder of Friedman Billings Ramsey Group, is well known for being a buyer of distressed securities in the depths of the financial crisis.
EJF Investments Ltd said in a statement it would look to list on April 7, with assets worth a net 68.1 million pounds and then raise additional capital through a placing programme over the next 12 months.
EJF Investments will aim for annual risk-adjusted returns of 8-10 percent and be managed by EJF Investments Manager, a unit of EJF Capital, the $7.4 billion hedge fund which Friedman runs and which invests across debt, equity and securitisation assets.
The new fund will invest in an existing portfolio including legacy real estate-related collateralised debt obligations, a passive stake in a CDO manager and positions in several speciality loans, including litigation funding.
It will also look to invest in similar opportunities, including debt securitisations and other speciality finance assets, the company said.
"Continuing regulatory upheaval in the financial industry offers a unique set of investment opportunities," said Neal Wilson, Chief Executive of EJF Investments Manager said.
"The combination of attractive legacy assets, shifting regulatory requirements and changing balance sheet strategies at the major banks has allowed us to assemble a portfolio offering diversification, stable cashflows and attractive yields."
(Reporting by Simon Jessop and Lawrence Delevingne; Editing by Greg Mahlich)