Hedge fund firm Gramercy Funds Management has closed its distressed credit fund to new investors.
Reuters reported that Connecticut-based Gramercy told investors that the fund, which closed on July 1, capped at approximately $900 million after recently raised just more than $305 million.
Gramercy founder Robert Koenigsberger explained to clients in a letter that the firm believes an environment of rising interest rates will "likely make refinancing for many in the second-tier credits in emerging markets extremely difficult.”
With locations around the world including London, Singapore and Hong Kong, Gramercy specializes in emerging market debt. It currently manages about $3.7 billion in assets.