Arini raises $1.5bn for credit strategy despite flagship fund loss

Arini Capital Management has successfully raised $1.5 billion in new capital for its credit strategy, despite a series of losses at the firm's main hedge fund. This development was highlighted in a Bloomberg report, drawing from an unnamed source familiar with the fundraising efforts. According to the report, over $400 million of the new funds were allocated at the start of October, with the remaining amount set to be deployed by February.

The capital raise was particularly noteworthy for Arini's credit strategy, which had been closed to new investors since 2024. This strategy oversees approximately $7.6 billion in assets and is renowned for its concentrated positions, which can result in significant performance fluctuations. The report also noted that Arini's main hedge fund experienced a substantial decline of around 5.6% in September, bringing its annual loss to 13.5%.

This represents a stark contrast to the average gain of 3.9% observed among credit hedge funds tracked by Bloomberg through August.

Since its inception in 2022, Arini has rapidly grown, starting with an initial capital of about $1 billion. Currently, the firm manages assets totaling approximately $21.7 billion across its credit-trading operations, demonstrating strong investor confidence and the enduring appeal of established credit managers amidst volatile market conditions.