Permal to raise $500M for distressed debt

The Permal Group, a hedge fund group owned by Legg Mason Inc., plans to raise up to $500 million to purchase distressed hedge fund holdings.
OCT 14, 2008
The Permal Group, a hedge fund group owned by Legg Mason Inc. of Baltimore, plans to raise up to $500 million to purchase distressed hedge fund holdings. The new fund is "designed to take advantage of investors' need for liquidity,” Omar Kodmani, senior executive officer of Permal's London headquarters, told the Financial Times. “There is an unusual number of sellers out there and those who are holding funds with a one-year lock-up, or even a three-month wait to the next redemption window, need to get out at a discount." Recent panic in the stock markets has caused some distressed investors, including hedge funds facing margin calls, to sell their holdings at reduced prices. A call to Permal was not returned.

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