Axxes Capital, the private markets asset manager launched by private equity veteran and sports investor Joe DaGrosa, has launched an opportunistic credit fund open to wealthy individual investors.
The new fund, called the Axxes Opportunistic Credit Fund, will be sub-advised by $4bn (£3.1bn) credit manager Greywolf Capital Management.
It will invest across the public and private credit sectors in several strategies, including opportunistic credit, special situations, distressed/stressed credit, hard assets and structured credit.
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Within opportunistic credit, the fund is looking to capitalise on “market price inefficiencies” that it believes represent attractive investment opportunities, according to its prospectus filed with the US Securities and Exchange Commission.
These inefficiencies may occur due to a misunderstanding by the market of a particular company or an industry being out of favour with the broader investment community, the prospectus said. They may also arise from broader market dislocations.
It will be operated as an interval fund – a closed-end fund that periodically offers to repurchase its shares from shareholders – with a minimum investment of $25,000. It will repurchase at least five per cent of the fund’s outstanding shares each quarter, according to the prospectus.
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Axxes and Greywolf believe that the fund’s investment strategy will offer exposure to opportunistic credit for investors who do not typically have access to this asset class. The fund aims to mitigate “investor burdens” typically associated with opportunistic credit, such as funding capital calls on short notice and meeting high investment minimums.
This is the third fund filed by Axxes Capital. Earlier funds include the Axxes Private Markets Fund, an interval fund that gives accredited investors exposure to co-investment and direct private equity deals, and Axxes Direct LP that provides qualified investors with access to secondary and single-asset continuation deals from private equity firms.
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Axxes Capital launched in 2021, providing financial advisers and their clients with access to private investment opportunities that it says are traditionally reserved for institutional investors and high-net-worth individuals.
DaGrosa, who serves as chairman and chief executive, also holds the role of chairman of private equity firm DaGrosa Capital Partners and is chairman of football player development platform Kapital Football Group.
He was reportedly interested in acquiring a UK Premier League football club, but backed out of a potential takeover deal of Southampton Football Club in 2021 due to a dispute over the valuation.
