Polus Capital Management secures ADIA investment

Investment firm Polus Capital Management said on Wednesday it has received a capital commitment from the Abu Dhabi Investment Authority (ADIA) for its Special Situations strategy that would take the strategy’s assets under management to around $5Bn.

The investment follows the US Federal Reserve’s first interest rate cut in four years, which is expected to boost companies with balance sheet concerns, the asset class that Polus specialises in.

Polus’ Special Situations strategy concentrates on secondary markets in bonds and loans.

The strategy started the year with about $4bn and has raised $1bn so far this year, including ADIA and other investments, said a person familiar with the matter.

The Wall Street Journal first reported the investment.

Wednesday’s Fed interest rate cut is expected to filter out across the economy, pushing the cost of borrowing for corporates down, making it easier for troubled companies to pay back debts.

Hamad Shahwan Aldhaheri, executive director of ADIA’s Private Equities Department, said: “We look forward to capitalising on a growing market opportunity through our capital commitment in Polus, which has built deep expertise in providing bespoke, innovative solutions in a range of situations.”

Polus, which has offices in London and New York, has roughly $11bn in assets under management.

Read: Advent and ADIA unit to acquire minority stake in Fisher Investments